Frugal budgeting or as I like to call it simple budget planning, is something I have now done diligently for at least ten years, well ever since a frugal living became a part of my every day life.
Since then I have always known exactly what my financial position has been and whether I need to make some adjustments to my spending.
It's been easier than I thought it would be as I am not very good with figures and the thought of slaving away over budget planning every month filled be with dread.
But once you have spent some initial time sorting out your plan, it's a breeze, you just have to update it every month and most importantly stick as close to your plan as possible.
Why is frugal budgeting so important?
The four main reasons for being in control of your money are:
The last one being the best one of course. Not having to worry about your finances and being in control, even if you do have some debt, is one of the most liberating feelings anyone can have. You are the boss of you, not your bank manager. You may not have a lot of money but you know where you are going and how long it will take you to get there.
Basically you will have to look at all, and I mean all, of your out goings as opposed to your income. Sounds painful, but once you get started it can be quite interesting to really discover just where you spend all your money every month.
For instance there are online budgeting software that will help you to organise and stay on top of your finances as well as flagging up errors you may have made.
Or you may feel happier setting up your own computer spreadsheet. Then of course there's good old pen and paper.
There also needs to be a column in your frugal budget for personal spending.
You know all those little things you buy on a daily basis that you don't even think about, like a bag of crisps here, a coffee there, or that weekly magazine you always buy.
However to really know what you spend on this, it is a good idea to keep a personal record of all your daily spending for about two weeks. It will really open your eyes as to just how much you are spending.
Now you have the tools to do something about it and to reset your personal spending limits which can be entered and monitored in your main budgeting plan.
A good way to keep to this new limit on your personal spending is to only take the cash you need for that day out with you and leave those cards at home too.
You may even find that because you are even more aware of the amount of money you have to spend that you are even more careful with it and might still have some left over at the end of each day. That's what happened to me.