The Budget That Ate New York City

It really isn't a budget that eats your income. It is the lack of a budget. I have found budgeting money one of the most difficult things to accomplish. Keeping on a budget requires keeping track of spending. Even with computers and software it is still a daunting task. Another obstacle is getting all the spenders on board with the process. These things alone would make many walk away from the process. I suggest that tackling this process is well worth the effort and in the long term will produce many benefits. Tracking is an essential part of budgeting. You have to know where your money is going to get your spending under control. When I worked out a budget for my household I found we were spending a large amount of our income on eating out. It was so much money that I did one of those "WHOA" things. My wife and I made a pact to cut back on our trips to the restaurant to two times a month. We typically go the same places so it wasn't necessary to put a dollar amount on that category. Simply going less was enough. You can do an inventory through your check register, bank statements or online banking site. Once you have completed a review of your spending habits you must devise a plan. What are the areas where you have the most control over spending? Buying music CD's, Video games or gadgets? How about services you use? Home Phones, cell phones and insurance to name a few. With a few changes you could save a significant amount of money and loosen up a tight budget. Once I used my 401k plan to force me into a budget. I increased my contributions to force me to save and made cuts in spending until I could afford to pay my bills. Sounds extreme, but it worked. Successful businesses keep track of their spending you should too.