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.
When you deposit money from your income source, you simply allocate the appropriate dollar amounts to the budget category accounts, based on your spending plan or budgeting worksheet. It's easy to move money around your various spending categories or budget category accounts whenever you need to. When a bill comes due, you simply transfer money from the budget category account to your checking and then electronically pay the bill. It's easy and extremely fast once you set it up through your banking institution.