The best budget is the one that works for you.
If your budget isn’t realistic for you, then adjust it until it becomes realistic.
Keep your budget up to date so you can continue to enjoy its benefits.
The Envelope Method requires you to move to a cash-only system and this is a great way to get your budget under control:
‣Each payday, withdraw the cash from the bank, then divide the cash into different envelopes for each expense category.
‣Use cash for all expenses. Once you spend the money in that envelope, that’s it for that week.
‣Each day, put the cash from that day’s spending money envelope into your pocket or purse. That’s your spending money for the day. When it’s gone, stop spending!
If you find that you’re spending more than you make, you have two options:
‣Make more money.
‣Reduce the amount you spend.
It's easy to cut those variable expenses, like entertainment, food, petrol and energy expenses. They are the expenses you have complete control over. Start by trimming your grocery budget, cutting back on entertainment, planning car trips to save fuel and filing up to coincide with the cheapest day in your area to buy fuel and watch the power you consume - turn lights off when you leave a room, keep the freezer full, turn appliances off at the power point.