Almost everybody I know, which includes me, has let a budget get out of control at one time or another. I really think it used to be able to control personal finances because it was not as easy to spend money. As I work on my own budget, and as I speak to people I know, here are some common problems that get people in trouble. Debit and Credit Cards. It is just so easy to buy things by swiping a piece of plastic that we lose track of how much money we spend. A decade or so ago we spent cash or wrote checks. It made us think about spending money more as we had to carry enough money or go through the act of writing and recording our checks.
Your next task is to identify all your expense areas whether they're irregular or not. Set up two columns for each pay period (as shown below); IMAGE NOT AVAILABLE HERE The first column called "Bdgt" is the portion of your income that each expense area will be assigned. The total of this column should never exceed the income you receive for that period. The second column "Used" shows a negative amount and is a record of what has been spent from that period. The beauty of this system is that it will always give you a running balance.