How to be Successful at Flexible Budgeting

Many people and companies have to use flexible budgeting methods because they receive irregular amounts of income. Here are the basics of how to be successful at flexible budgeting.

Budget Frequently

In order to be successful with this method, you are going to have to go through the budgeting process frequently. For example, if you are paid once a month, you are going to need to sit down and do a budget at the beginning of every single month. You cannot use a generic, standard budget that you calculated long ago. You will have to continuously alter the monthly budget so that you can avoid any problems.

Spending Categories

You are going to need to break your spending down into several different categories. These spending categories should cover every type of expense that you have. Whenever you are determining how much money you are going to budget for a particular category, you need to use historical data to help you come up with the proper amount. Look at your expenses over the last year and determine how much money you are spending in a particular category every month. Take the average amount and use this for your budget for that category.

blog comments powered by Disqus