Create a Budget that WORKS!

I want to introduce you to the zero-based budget. It's a basic concept that says income minus out-go equals zero. Now I know some of you are thinking this sounds fishy. This doesn't mean you actually spend every penny you bring in. It means you assign every dollar a name. Whether it's going into savings or being spent out on the town, every dollar has it's place. When there is money just sitting there with no purpose, guess what happens? It leaves- via the pizza delivery man or the mega-store of your choice. This is why you will always be broke if you don't have a plan. Now obviously, it takes a little effort and planning to be this intentional with your money. But a funny thing will happen when you do this, you'll feel like you got a raise.
As I mentioned in the previous post, the pit falls of budget making and how to avoid them.  I want to go into more specific detail on a few things.  First, irregular income earners.  If your income varies widely from month to month or seasonally then you need a budget more than ever. Here's how you do it.  Again start with your four walls and make a list of all the things you need and want to spend money on this month.  Write down as many things as you can think of.  Then, number the list by priority.  Work your way down the list until the money runs out.  By doing this you know exactly what to do with the extra money that comes in and the money isn't wasted on, "let's go to dinner since I got a bonus."  This is not to say that you will never go out to dinner.   I am saying that there will be a limit and it won't be just because magic money appeared in your account.
This goes right into the next thing I wanted to talk about, categories that should be always be included in your budget.  In the beginning you must have a miscellaneous category to cover any little things that come up during the month.  As your budget gets more fine tuned then this category won't be as important because you will have learned to account for those little things.  Another category you should always have is a blow category.  This is for exactly what it says, to have a little money to blow on whatever you want.  Visit the vending machine at work, buy a couple of movie tickets or a pizza once in while.  Or you could buy games like my husband does.  This is especially important to have in order to release steam.  Remember, the first 3 months will probably be a mess, but it will get better.