Check out www.adamscapgroup.com for more Information on Ways to Get Out of Debt.

1. Characteristics of a Good Budget
Now that you’re ready to create your own budget, let’s examine the
characteristics of a good spending plan. By doing so, you have a guide as to how
to create a budget that is suited for your personal circumstances and one that can
easily be followed.
First of all, a good budget is realistic. It should reflect your present
circumstances and lifestyle (with some alterations, of course, if you’re
overspending). A budget should not be stifling—it should still give you a little
elbow room to spend for things that you can’t do without once in a while. This is
especially true in the early part of your budgeting when you’re still getting used
to spending less.
Next, it should be flexible. A budget is not set in stone. When your income level
or marital status changes so should your budget. If you started budgeting when
you were still single, you can’t use the same budget when you already have
kids—you’ll have to factor in their needs in the picture. If you suddenly lost your
job, you might need to readjust some portions of your budget to be able to ride
through this rough time. When you finally get another job then you can readjust
your budget to reflect it.
Third, preparing the budget should work for you. That is, if you are the type
who does not like to delve on the specifics then your budget should focus on the
general items without losing track of the purpose budgeting in the first place.
However, if you are the type who likes to write every detail then go ahead.
Prepare a budget that is as detailed as like it.
The reason? Preparing a budget should be fun. It should not be something that
you dread each month but something you look forward to doing. There is no
right or wrong way to make a budget. For as long as you have the necessary
categories there and have customized it to fit your income and lifestyle then
you’re all set.
Fourth, a budget should include both expenses that occur on a monthly basis
and those that don’t. When you make your budget, you normally include

2. categories like groceries, utility bills, credit card bills, mortgage and car
payments, and childcare payments. Because these expenses are recurring, they
are naturally included in your spending plan.
However, there are expenses that don’t occur on a monthly basis but on irregular
times throughout the year. This includes auto and home maintenance expenses,
personal property taxes, homeowners insurance, and even the money you spend
for gifts at Christmas. When your car breaks down, for example, and you don’t
have the allocation for it, you have to dip into your savings to get it repaired. So
when you’re making a budget, make sure that you include these items. Go back to
past records to determine how much you need to allocate each month for such
categories. If you don’t have them, research on the current national estimates
given by experts. For instance, you’ll have to prepare at least $100 a month to
make sure that you have enough standby funds for minor home repairs. It’s
easier to break down the total expenses on a monthly basis so that you don’t get
confused or forget to include these in your budget.
Finally, a budget should include a way of tracking your expenses. This is one
of the most forgotten areas of budgeting. Make sure that you have a little
notebook and pen to carry in your bag wherever you go so that you can list
everything—yes everything—you have bought and paid for, either by cash or
credit card. You don’t have to do it right then and there. But do keep receipts and
remember everything so that you can do your recordkeeping before you go to
bed that same day. By doing so, you will be able to check if you are really
following your budget or not.
Check out www.adamscapgroup.com for more Information on Ways to
Get Out of Debt.
Other related info you might be interested in:
Money-Saving Secrets for the Young
Top 10 Tips for Personal Finance Success
How to Choose the Right Investments