This week I've been reading "Dave Ramsey's Complete Guide to Money" and have learned quite a bit.
I want to share with you four things Dave has taught me about budgeting.
1. Include every possible expense you can think of for the month. Try to plan ahead and be prepared to spend money on anything and everything you think could come up that month. For example, allocating some money for an oil change or medical appointment.
2. Each month will be different. The budget you planned for last month probably won't cut it for this month. We've got different expenses each month, so why do we think we can use the same exact budget and not fail?
3. Perfecting the budget will take a few months. Budgeting is hard. We most likely won't get it right the first or even second month we try. It might take some tweaking and adjusting to figure out a good flow and be able to anticipate expenses.
4. Use the envelope system for appropriate expenses. This means keeping envelopes with the amount of cash allocated to those certain categories. The categories that make the most sense to keep cash for are those which you can pay for at a physical location, like food and gas. This way, when the envelope is empty, you know you're done for that category that month.
Guys, this book is great.
HIGHLY RECOMMENDED and I'm not halfway through. It's just so much more to the point and clear than the Tony Robbins book I started a while back.
What are your budgeting triumphs and failures? What are your goals?