How is it that many times it is just not possible to stick to the budget, no matter how hard we try? The most likely reason is that the budget is not realistic. There is no point spending all that time and energy to plan your monthly finances, if they don’t really account for essential spending.

The first thing to do while planning a monthly budget is to write down your income – this should take into account every source of income you have. This is the figure that will determine your monthly budget.

The next thing is to keep a saving goal. Plan a figure that you want to save every month. Then you list all your essential expenses, and this does not include impulse shopping! It includes utilities, and other outgoing payments such as maybe pet insurance, mortgage payments, credit card bills etc.

The difference between the essential outgoings and incomings is what you are left with. This can include flexible spending such as eating out, groceries etc. Planning groceries is an independently important topic.

Making adjustments and amendments to this amount can help you achieve your saving goal. A monthly budget should be perused at the end of the month to see how well it has worked. If it hasn’t worked as well, look in to why that is. Make adjustments accordingly, either to your spending or to the budget!