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.
Tip _ Allow Yourself Some Mad Money _ The best tip you can have when creating a monthly budget is to allow some mad money for yourself and spouse in the budget. This is the number one reason most budgets fail and people do not continue using a monthly budget. The resentment of not being able to spend any money makes people frustrated and then they stop tracking their spending all together. If you allow yourself and your spouse even a small amount of money to be spent on anything you wish without having to confer with the other person, your budget will have a much better chance of being successful. If money is tight just allowing a very small amount will help keep the resentment at bay.