Build a Budget in 3 Simple Steps – Step #3
Finally, Step #3.
- Use your budget
A budget is only valuable if you use it. It is a guideline to ensure that your monthly income covers your monthly expenses. The simplest way to use your budget is to monitor your actual income and expenses against your planned/budgeted income and expenses. At the beginning, it may be worthwhile to do this monthly to make sure your budget is reasonable however as you find your groove, every 3, 4 or 6 months may be okay.
You may decide to tweak and adjust your budget or you may have to make changes out of necessity. It is always easier to adjust your expenses as opposed to increasing monthly income so keeping your fixed monthly expenses low allows you more flexibility. Ideally it also includes amounts set aside for your goals such as savings (for big purchases, retirement etc.) and debt repayment (repaying debts faster than required).
A budget is a useful tool. Keep it simple and you’ll find it’s easy to use.
Posted: August 26th, 2011 under CEO of the House, Money Savvy Tips, Tips & Tricks.
Tags: Budget, Dear Piggy Bank
Comment from Weronika
Time September 20, 2012 at 2:14 am
It all depends on how many poplee are in WIlbur’s family. $800 seems excessive to me, but I’m in a 2 person family. We budget for $350 in food a month (groceries), plus a few meals out (up to $100). While getting winter tires on the car last weekend, we had time to kill and it was dinner time, so we went for a healthier wrap for dinner. I was absolutely shocked at the cost of two wraps $20 could be spent far better than on two sandwiches. Eating out is a ridiculous expense, especially for quick fixes. You can make plenty of nutritious and filling food in 20 minutes or less (or use a slow cooker!), and if any of those costs include lunches, make a sandwich!Online video games could be cut down perhaps there are multiple games that aren’t being used, and it’s an unnecessary expense.Phone, cable, & Internet seem high. Can it not be brought down? For home phone, cell phone, high speed Internet, and cable, our package is $180.If you’re driving to the corner store, or to anything within 1 KM, try walking you can walk a KM in 15 minutes, get some exercise and not spend gas money to warm the car and drive a small distance.Fun is really what you make of it. A walk by yourself is boring, but a walk with a friend can be a great way to catch up, spend time together and enjoy your surroundings. The monotony of a routine does get boring, so why not see what’s in your area that you’ve never done before. There are often free festivals or events that are throughout cities, and a little googling will get you that information.Of course, Wilbur is not real, but these are all options for real poplee to reduce costs.