Build A Better Budget: Part 2

Now that you've tracked your spending, it's time to write your budget. 

CHALLENGE: Write your budget and stick to it for a month.

Keep these guidelines in mind:
1. Look at what you spent last month as a guide for this month's planning.
2. Distinguish between needs and wants (discretionary spending).
3. For the first month, it might be easier not to alter your spending too much from last month -- this could frustrate you into completely abandoning your budget if you fail to meet your new spending limits.
4. As you meet with your spouse each week to review your finances, make sure that your spending for the week has been consistent with your budget.

Following a budget can be a life-improving habit for anyone!  But like any habit, budgeting takes time to be habit-forming.  Don't be hard on yourself if you find that you grossly underestimated expenses in a few categories.You'll find yourself improving each month.

Like I've said before, if you can follow a budget, you are much more likely to get what you REALLY want most.