I'm a big believer in the notion that cash is king when it comes to paying for items. If you don't have the cash, you can't afford the item and shouldn't buy it. Traditional means of budgeting to help curb spending is the Cash Envelope system. But there are clearly some disadvantages of that. There's also a 21st century version of the Cash Envelope system called Virtual Envelopes. We'll explore how you can implement a Virtual Envelope system using your budgeting worksheets.
Mistake _ Not Planning for Upcoming Expenses _ When you are creating a monthly budget it is always helpful to save a certain amount of money for a given category even if you don't have that expense for the given month. For example, let's say you pay your car insurance every six month. It is important to take your payment and divide it by six. Then, each month you will want to save that amount so you have the insurance payment when it comes due instead of trying to come up with the whole amount in one given month. If you can do this for as many periodic expenses as possible, it will be easier to have a balanced budget each month.