So Many Shoes, So Little Money – Blog

Budget Success

January 5th, 2009

It’s not what you wear – it’s how you wear it. Similarly, it’s not what you budget – it’s how you use it. Most budgets fail because they are seen as a restraint as in the plaintive, “It’s not in my budget.” Instead, start thinking of a budget as a way to help you achieve your life’s goals and dreams. A budget doesn’t tell you what you to do, it tells you what you can do. There, isn’t that more palatable already?

For a budget to succeed, it helps to have goals. Goals can be short or long-term, large or small. In fact, it’s good to have goals for both. So you’re coveting …? Whether … is a new car or an expensive cashmere sweater, make use of your budget to save for it. Set aside a certain amount each month so you can eventually afford it. However, if the amount puts you over your monthly spending allowance be sure to compensate elsewhere in your budget.

The only way to find out if your budget is actually working is to track your actual spending against what you had planned to spend. How do you do this? Continue to keep those receipts. At the end of every month, add up what money you actually made, what money you actually spent, and what you have left over. Then compare it to what you planned when you made up your budget. If you spent more than you expected, spend less next month. If you spent less, think about putting the surplus money into a savings account.

Filed under: Budgeting

Tags: Budgets, Shopping