Budgeting Strategies

Steve Sweitzer

I currently have my budget stet up with traditional Category headers like: RV Expenses, Insurance, Food with sub categories like Groceries, Alcohol, Restaurants. I'm considering reorganizing the budget with major categories for Fixed Expenses, Anticipated Expenses and Discretionary Expenses. Any suggestions/recommendations?

John_in_NC

Budgeting is quite personal, and you have to find out what works for you. Psychology plays a big role in it, too  You might wish to keep multiple budgets until you find the one that you like best.

I only track my discretionary expense categories in my budget as that is really all I have control over in the short term. That keeps things simple, and allowed me to stick to it for several years. When I had tried budgeting everything, I always abandoned the budget as it was too complicated.

One note: As far as budgeting is concerned, Quicken is like looking in your rear view mirror. I do suggest users take the time and crunch the numbers in a spreadsheet first in regards to income/fixed expenses moving forward. Then, figure out how much is left for the discretionary things so you can focus on them.

That is what has worked for me, but your mileage may vary.