How to create a budget plan?

I hate budgeting and keep dissuading from my budget plan. How to keep track of my finances and why I dissuade every time from the budget plan?

4 Answers

First of all, you should stop dissuading from your budget plan. Formulating the right budget plan is essential but it won't be able to help until you follow it rigorously. So, evaluate your financial condition, create a reasonable budget plan and follow it carefully.

The most common reason behind dissuading from a budget plan is that you’re not formulating a budget in accordance with your financial state. Make sure you review your financial state before formulating a budget plan and allot separate fund for your entertainment expenses. Well, following a budget plan doesn’t mean that your life will be gloomy. You can follow a method of envelope budgeting to avoid dissuading from the budget plan.  

Well, cash envelope budget system is an old money management strategy that is making a comeback. All you need to do now is to prepare a list of your monthly expenses and break it down into different categories. Make sure you write the name of each category on separate envelopes. You can divide the cash among the labeled envelopes and this helps to track your expenses. When you’re left with no money in the envelope, you know it well that you’ve spent everything in your budget for that category. Envelope budgeting helps you to stay within your means and guides you to avoid spending recklessly.    

This may sound a little silly, but many years ago I started something to kind of help me keep on track.  I sat down and wrote out on a piece of paper all the bills and how much each was.  The bills, like utilities, phone, etc, I kind of averaged approx what they would be.  I got as many envelopes as I had bills, along with 2 extra.  I labled each envelope with the name of the bill and how much each bill was.  The other 2 envelopes, I labeled one EMERGENCY and the other FUN.  (now on the bills, don't forget to include you groceries, car gas, etc).  I figured out my monthly checks and then went thru to see how much out of each check I needed for each bill to pay it for the month, and allowed so much for the emergency envelope and the fun envelope.  If you have a checking account,( and i know this might be a bit of on inconvience, but it might help), with draw the money for the bills and then get money orders for what amounts you need for your bills (except emergency and fun, groceries, car gas, etc, those you can put cash in).  Put the money orders into the envelopes until it is time to pay the bills.  Go ahead and fill out the money orders to who they are suppose to go to.  This way, you know you will not use your bill money for other things.  After doing the bills, you will know how much you have for the other things and you can sort that out from there.  Know that what you put in your fun envelope is all you can spend for things YOU WANT OR WANT TO DO.  The EMERGENCY envelope, put it up and keep it out of sight, per say.  You never know when an emergency will happen and this way you have the money in case you need it.  What you put back for groceries, gas, and things like that, just pay attention to how you spend.  If you want an idea how much you spend in each for the month, keep your receipts and at the end of the money, you should be able to average things out.  One other thing you can do, so you can see where your money is going (other than to bills), keep your receipts and at the end of the month you can see what all else you spend your money on and how much you can cut out.  Good luck.  Hope this helps some.  It is just an idea, at least to get you use to being on a budget.

Budgeting doesn't only deal with depriving oneself of the luxuries but rather it helps you keep a tab on your finances and maintain the striking balance between your income and expenses. You need to strictly follow the budget throughout the month and dissuading won't help you. Stay within your budget and evaluate it at the end of the month.

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