Is your budget working?

Author : teriann
I know that having a budget is the best way to save money so why is it that so many people can  not get their budget to work? I decided to take a closer look at  how budgets are made to see if I could find the answer.

Budget Pitfalls

I think one of the biggest problems people face was underestimating how much money they would need to do basic necessities. The amount they put aside was never enough but after a  quick examination of some persons’ spending habits  it is clear that some items that were bought were unnecessary. They were ‘wants’ rather than ‘needs’.

Armed with the knowledge that there was a way to stop going over budget, I also realized that some people have unrealistic expectations about their ability to buy expensive items.. These items might not be a good short term goal. However, it might be possible to purchase some items over a longer period of time.

Be Accurate

It is also important to realize that in order to be successful you have to provide as much detailed and accurate information as possible. It is impossible to guess your earnings and expenses and create a good budget.

Gather your receipts, bills  and pay stubs and really make the budget a true reflection of your life. This includes bank statements, investment accounts, recent utility bills, and any information regarding a source of income or expense. One of the keys in the budget-making process is to create a monthly average, so the more information you can dig up the better.

Your expenses are not only limited to your bills, it also includes mortgage or rent payments, car payments, auto insurance, groceries, utilities, entertainment, dry cleaning, student loans, retirement or college savings — essentially everything you spend money on.

Expenses – fixed and variables

Remember when making a budget ensure that both types of expenses are reflected both fixed and variable. Fixed expenses are those that stay relatively the same each month and are required parts of your way of living.

They included expenses such as your mortgage or rent, car payments, cable and/or internet service, trash pickup and credit card.

These expenses, for the most part, are essential yet not likely to change in the budget. Variable expenses are the type that will change from month to month and include items such as groceries, gasoline, entertainment, eating out, and gifts. This category will be important when making adjustments.

Do you have a good budget?

You know you have a good budget, if it is flexible, realistic, easy to follow and you are able to save money!

Drop me a line to tell me how you make your budget work!

Teri Ann Renee Paisley

Gleaner online writer

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One Response to “Is your budget working?”

  1. Ms. Veronica Edwards says:

    Re: Consumers Column
    Budgeting a Budget
    Maybe it should fascinate me to view economists and some civil servant in our culture, but you should be the assessor. I disparage them in no way; I hold no grudge and no envy for their “wealth” tasks and I therefore hold no vendetta machines.
    Recently however, vendetta machines have replaced my utility machines, so much so that my water meter for example has been referred to as word-o-meter. I hold varied and different views sometimes foreign perspectives on many issues in MY culture, but it must be a real problem. In reality though the public ought to know that these events are real and the conditions exist as I write, and so they should be prepared to experience similar circumstances and understand that no robot has blood.
    Do not question if I am civilize and do not put me on your comedian list. I do not hunger for humor so allow me to indulge you in some of the intolerable experiences relating to these companies. Note carefully the vision and mission statements of these companies too.
    My water has been disconnected since last year, for approximately thirty five thousand dollars, but I still get bills. At one instance I received a monthly bill for almost ten thousand dollars and I am the only person who uses the precious commodity. I am not home during the weekdays and I received another recent bill for approximately forty six thousand dollars, so to date it is still disconnected.
    My power supply has been disconnected since last year. I still get bills. I observed an extra one thousand five hundred dollars for the Christmas season bill and then after Easter I observed a similar addition or should I say padding. Not to mention that with all the needs a female like myself has and all the bleeding after several mishap carrying out the functions for a civil society.
    I could elaborate a lot more, but to allow a little of the disrespect to visit your column may ruin other things. This should not be your typical complaint that these utility companies must not add to the burden of a civil human who tries to understand when the Government cannot pay workers adequately. However, budgeting a salary and have these bills cannot be prudent and now I can accept no excuse. Why do I need to budget then when I am already given a budget? To budget a budget in post-modern society is begging for poverty. When a bus conductor comes to disconnect my power supply, and when I work hard and use my electricity to get results and receive this treatment with all my dirty linen on lines and in technological devices, please ask someone to remind me what a budget is. In that same breath what is service? Furthermore, explain precisely these relating to budget for a cancer-aids government pauper.

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