You always see to it that you don’t spend more that what you earn. That’s the usual way and you are sort of contented the way things go. But lately, you find out that you find difficulty because you seem to be running out of money. You find out that your usual way is no longer practical due to recent economic events which resulted in increases in your expenses but not in your income. You can no longer save money. You can no longer provide yourself with the things the things you had before. You become concerned about your present economic situation and what may happen in the future. You need to have some revisions. You need to have a budget. Perhaps you have seen or heard a lot about this sort of thing before.

There are so many ideas about budgeting. They are very useful and they can help you out of financial trouble. They can help you save. Well, the target of every person who makes a budget is to be able to provide himself with his basic needs and to be able to set aside some amount for future needs. That means wise spending and saving.

Let us first examine your expenses. On what do you spend your money? It is good to have a record of your expenses and keep all the receipts. If you haven’t done that yet I guess it is time for you to start. Some call this tracking down your expenses. You have to find each item of expenses. Your record will be your guide in determining your budget.

The longer the time frame of your record, the better because you can have a more or less reliable reference for your budgeting. There is no such thing as a perfect budget but it pays to have a more reliable basis on the amount you will specify for each item.

Expenditures could be divided into categories. You can categorize them according to your choice. I suggest that your categories should be arranged according to priorities such as food, shelter, clothing, transportation, debt payments, extras, and savings. As soon as you have categorized your expenditures you can now specify the amount you will allot monthly for each category based on the average expenses for this in the past.

If you have spent $12,000 for food for the past three months that means you will set aside $4,000 in your budget. Here, you can decide on the cuts you will make for each if you think it is necessary Now that you have determined how much you will spend monthly for each of the categories you have chosen, there are very important considerations you will have to take into account.

First, you should never sacrifice nutrition and quality. This means that health, nutrition, and safety should never be sacrificed just to save some amount. Temperance is a good thing but never risk your life and safety.

Second, try to set aside some amount for savings. Your budget will be destroyed if you don’t save some amount. There are always unforeseen expenses that you have to make. Most of these might be in the form of extras For instance, you have to make an extra call, travel an extra mile or buy extra food.

Third, you must make an effort to stick to your budget. At first you might find it very hard but as you get used to it, you will feel comfortable with it.

Fourth, always keep your receipts and record every expense you make. This will help you track down where your money goes and you can make changes and improvements where you think there is need.

This type of budgeting is quite simple. Don’t hesitate to make changes and ask for help online or from good friends if necessary.