Saturday, April 26, 2008

Savings improvement method

Going over budget. How many of us actually stay within budget each month? Tracking our monthly spending has been a powerful tool but despite saying to ourselves "Ok, we are only going to spend up to $X amount on discretionary items each month," we've still managed to go over our budget more than we would like to admit. So what we've started doing now is taking our monthly overspend and carrying over to our next months spend tracking. The idea is that when we tally our expenditures for the next month, we''ll have accounted for the overspend from the previous month and this greatly influences our spend decisions for the present month. The end result - even if we go over budget for a month here and there, we are still meeting our savings goals from a long term perspective. I wish we had done this earlier but better late than never.

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