Best Budget Format?

[srg83]

I'm struggling to keep to a budget every month - it seems I set one up, but have difficulty following it (either an unexpected expense pops up somewhere and throws everything out of whack, or I spend too much).

Right now (and I'm nearly 100% sure I'm doing it wrong) I'm looking at the whole month on a weekly basis; I have all my expenses that I expect to incur listed for each week of the month.

But I think the problem is I don't really go much further than that. I'm curious to know what formats work for different people, and how you "enforce" it so that it actually works.

My goal is to have free cash at all times for any number of last minute get-togethers with friends, money emergencies, etc.

And yes, I know part of it is will-power - but there's got to be a problem with my system as well as a problem with my spending habits.

[YYZFA]

Here is a very good article with a budget template attached to it. I downloaded this Excel template and use it all the time.

I also bought a notebook, and wrote down my anticipated weekly expenses (bill payments, RRSP contributions, etc.) so I see how much I'll have left after each paycheque.

http://www.redflagdeals.com/deals/main.php/articles/cashflow1/

[joe1487]

Just set up preauthorized transfers on each payday, to a second account, for the amount you're trying to save each month, and spend the rest. Your spending will adjust to accommodate the amount of money available - just like it did when you started working for a given income.

Also, if necessary, you may feel the need to budget for recurring expenses, which may not be drawn from your account each paycheque. If this is the case, total up your monthly preauthorized expenses and divide it by 2 (for your biweekly paycheques). Open a third account, run all your direct debits through that account, and set up preauthorized transfers for half your monthly preauthorized expenses to account number three.

That way, what remains in account one is the discretionary funds available for your spending. You will always have cash accumulating in account two, and you will always know what you have available to spend (account one). Many banks, like BMO, let you house a great number of accounts under one banking plan for the same cost. Banks like PCF let you do it for free. Make sure all these accounts have overdraft protection, just in case your calculations are off one month.

I don't do any sort of budgeting, which seems sort of counterproductive for a business student, but it works for me. I'm generally very frugal, and spend only a fraction of my income, so I just let cash accumulate (in a high interest savings account) while I reach specific savings/investment goals.

[habsfan93]

I don't do any budgeting either, but I do track all my expenses in a spreadsheet next to income, so while I don't actually budget say 25% of my income to so and so, just by tracking my expenses I have a greater awareness of where I'm spending my money and it makes me more conscious of what I'm doing without the guilt of ever having to "go over budget on something".

[netriones]

I'm struggling to keep to a budget every month - it seems I set one up, but have difficulty following it (either an unexpected expense pops up somewhere and throws everything out of whack, or I spend too much).

Right now (and I'm nearly 100% sure I'm doing it wrong) I'm looking at the whole month on a weekly basis; I have all my expenses that I expect to incur listed for each week of the month.

But I think the problem is I don't really go much further than that. I'm curious to know what formats work for different people, and how you "enforce" it so that it actually works.

My goal is to have free cash at all times for any number of last minute get-togethers with friends, money emergencies, etc.

And yes, I know part of it is will-power - but there's got to be a problem with my system as well as a problem with my spending habits.

Write down everything you spend including rent, food, mortgage, etc. in a excel spreadsheet. Sum them up. Subtract it from your paycheck. You'll know where money comes from and goes.

[srg83]

Thanks for the help/advice. I luckily already have a few accounts to my name (two chequing - one is a joint account, a savings, and an ING savings). One of the things I want to do is put all bills on one account like one of the suggestions.

I will try to build a better budget for myself too, of course.