This is part 4 in the series ‘Budgets for Dummies.’ You may want to check out part 1, part 2, and part 3 first.
So far we’ve talked about why a budget is so important, how a budget frees your spending and how to build a budget. All of these are key points to financial freedom, but this final one is the proverbial ‘final nail in the coffin.’
Think about you car. A car runs really well as long as you change the oil and keep up with the regular maintenance. But what do you think would happen if you never maintained your car? Well, at the very least, it wouldn’t last near as long as if you have taken care of it.
A budget works the same way. If you don’t regularly maintain it, it will fall apart.
Remember when we created the [tag]budget[/tag]? We tracked our [tag]expenses[/tag] for 30 days and then we had a family meeting to build the budget. Well, [tag]maintaining[/tag] the budget isn’t much different. As you go throughout the month, keep track of your expenses in each [tag]category[/tag]. If you have your budget on a computer it is a lot easier. Personally, I like either Excel or Microsoft Money
Continue this for 3 months. Try to stay within your [tag]budgeted[/tag] amounts, but don’t stress if you go over in a few areas. At the end of the three months, schedule another family meeting. In the meeting look for areas in your budget that you overspent/underspent and [tag]adjust[/tag] the budget accordingly.
Repeat this cycle every 3 months. Life changes, needs change, kids grow up, incomes change, expenses change and your budget should reflect that. Re-evaluate your budget every three months and you’ll be well on your way to financial freedom.
A few tips:
This has been part of the Budgets for Dummies series. You can find the rest of this series here, here, here and here.
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