This is something that I do well because I naturally round up in life when it comes to numbers. When you sit down to write your budget out, think about making each slot about $5 more than the actual cost. This gives you nudging room just in case that electric bill was higher one month than the next. Moreover, at the end of each month, you can take the money not spent in the budget and transfer it to your savings account.
Tip #2: Small Goals, then Big Goals
Starting out small with your budget might be the route for you if you are easily overwhelmed by finances. If you are not ready to make a full-scale monthly budget, then start out by budgeting little things such as the electric bill, the grocery bill, and the fuel bill. Starting out budgeting a few things at a time can get you used to the concept and you will be able to stay on task more easily than if you start out budgeting everything at once. When you feel comfortable budgeting more predictable slots, begin by adding in other things such as travel, rent, and incidentals. These are the spots where people falter on their budget, so it is important to keep track of your little spending habits.
Tip #3: Make it Worth Your While
Budgeting sounds boring, but it can make you rich. Rather than spending all of your money and living from dime to dime, make budgeting about giving back to yourself and your family. Sit down with your partner or family and discuss the needs for a budget and what it will bring you in the future. Perhaps you want to save money for retirement in the long run and a vacation in the short run. Whatever your reason is for needing a budget (besides gaining money), explain to your family and yourself that it will get you something in the end. My suggestion would be to start several savings accounts that are attached to your checking account. Have 75% of the remaining monthly budget sent to your savings-for-life account and 25% of the finances stored away in a vacation account.
Tip #4: Allowances and Mistakes
It is hard to stick to a budget at first. It is even harder to stop doing all of the fun things that you are used to doing outside of the home. To keep on budget and avoid over-spending, you should set aside a certain amount of money per month or week that your family can use for whatever you love to do. For example, I set aside $30 per month for dinner out. Typically we go during the middle of the month to our favorite pizza place and enjoy that time out together. We are all satisfied and don't feels starved for outside entertainment. If you and your family love to go to the movies, then set aside money for going to the theater or weekly movie rentals. This is the best way to stay on budget and avoid making mistakes.