You’ve done the math and set the plan. How is it going? A plan is the key and a budget is simply a tool you use to reach your goals. What happens if you go off track?

The first step is to check in and see how it’s working. Compare your actual spending to your budget. It may be tempting to just check your bank balance and if the bills are still being paid, leave it at that but…..cash flow can be a tricky thing and sometimes it seems as if there’s money for all the bills but if you are spending more than you make, it will won’t be long before there isn’t enough in to pay rent or car insurance.

Checking once a month can be simplified once you’re confident that your fixed or regular bills (rent/housing, food, utilities etc.) are consistent and falling within your budgeted amount for these items. Discretionary or variable spending (entertainment, gifts, clothing, holidays etc.) can be the wild card and these are the ones to watch. Compare actual to budget so you can understand what’s fine (within budget) and what’s not.

Some tips to keep you on track:

• Set yourself a weekly spending limit on things that you know are a challenge
• Use cash to pay for items in these categories, taking out your ‘limit’ on a certain day each week
• Keep a buffer in your account of a few hundred dollars to cover off bills that fluctuate
• Set up automatic savings plans so the money doesn’t hang about in your account
• Monitor your spending against your budget
• If you are over budget, understand why and decide whether it was a manageable blip or a problem needing a solution – be creative! If it’s too tempting to buy when you’re window shopping, leave the cards at home!