spending your income) you should take that $100 and put it somewhere (perhaps in a special account for future expenses, it will earn interest in the meantime).  Then, when the bill comes, you’ll have the money waiting and won’t blow your current month’s budget.

 

Other examples are funds for gifts.  Birthdays, holidays, weddings, etc.  Don’t let Christmas be a budget-buster, plan for it in January, and put some money away every month in advance, and the holiday will be a happy one like it should be.

 

9. Go over your budget monthly.

 

It doesn't mean that if you have a fixed income in a month, your expenses are also the same every month. Always make it a point to review your monthly income and expenses and update yourself to any changes that may occur each month. Sticking to your budget doesn't literally mean to stick it out all throughout.

 

10. Make a budget and not a diet plan.

 

Remember that the reason you are going to set a budget is to guide you in your expenses and in saving money. Do not be so confined to the fact that in order to save more money is to limit your expenses to the point of neglecting the things that you actually need. Having a good budget doesn't mean not eating lunch to save money or walking a mile instead of riding a bus.

 

Be realistic. It's the most important thing to consider when you intend to set an effective budget. Setting a budget may not be that easy, but nevertheless, what you'll have on your budget may make things easier for you like managing your debts and your expenses. It is not how well you do in math, it is how you foresee the future and know how to adjust to it.

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