About this site

Welcome to the $1,000,000 blog.

My name is Dan and I am going to raise my net worth from practically zero to one million dollars. This is where I write about how I make, save and invest my money.


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The Million Dollar Blog is no longer active. All posts about my attempt to make a million dollars will appear on my new website: dmossop.zeeblo.com. Please update your bookmarks. Thanks.
 

More budget tips

Okay, I've remembered. Here are some more of my budget tips.

TIP 4: Have a goal

Decide exactly why you want to save money. What are you saving for and how much will you need? This way you can see the benefit of your budget. For instance, I am saving up to take a train ride from Melbourne up to Alice Springs and on to Darwin at Christmas time. I know how much I need and know that if I stick to the budget I will have enough to go. It really is a great incentive to keep saving.

TIP 5: Reward yourself

Your budget will be that much easier to achieve if you reward good behaviour. If you finish the week under budget, put some of the remaining money towards something you really want. Oh, and use the rest to top up your savings!

TIP 6: Pay yourself first

At the start of your budget week take however much of your income you wish to save and put it out of reach (in a savings account, in a sealed money jar, etc.). That way it won't be lying around tempting you to spend it.

TIP 7: Keep it simple

It may seem that making a successful budget (by following my tips, of course) is going to be horribly complicated, with lots of book keeping required. This is not really the case. Which is lucky, since the more complicated a budget the less likely that you'll stick to it.

In a typical week, here is how I manage my budget. My scholarship gets paid into my current account. I then take out $230. I put $25 into a sealed tin marked holiday money. I put $75 into a sealed tin marked savings. I then use the remaining $130 to live off for the week. I don't have any written plan of how I spend this $130 - I just informally decide how to allocate the money based on what events are happening that week. And that's basically it. I pay rent direct from my checking account and I periodically empty my savings tin and deposit it in a savings account.

The setup of the budget can be as complicated as you like, since you only have to do it once. But once you've done it, make sure the resulting budget is really easy to follow.

Comments:
It is always good to have a budget. Maybe your weekly idea of a budget is better than a monthly one. If you like to read more about finance, visit http://tekfin.blogspot.com. It has some good finance advice like investing and more.
 
We have a budget system. I gather bills and list expenses, and Will (my dh) prioritizes everything. Then I get out the envelopes marked Week 1, 2, 3 and 4 and divey it all up. Works well for us.
 
I can't believe thats you're weekly budget!!! Mines $40! But i was happy to see that i do all seven of your saving tips!!!

Plus, considering how, well, i was gonna say dry but maybe thats too harsh and i'll say adult your blog is you have so many hits! I thought i was good but you kick my arse! Maybe i should join BE... but i have enough issues with my readership as it is.....

Just wait till your readership is picking on you, accusing you of leading them astray and insulting them.... Then you'll be a real man... Just like me!
 
I think tip 5 is fantastic. I think it’s okay to give yourself a pat on the back for sticking to your budget and saving money. It serves as encouragement and motivation to keep going along the same path. You want to feel that your efforts aren’t going to waste, so a little reward every now and then wouldn’t be out of place at all.
 
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