Budget tips

When first creating a budget, it is important to be realistic, not optimistic.  Don't expect to change your spending habits right away.  The first step is to track where you are spending so you know what areas you can cut back.  So for the first few months, spend your paycheck like you normally would, but enter your purchases into your NeoBudget and into various envelopes.  After a few months, you will get a good idea of how much per month you spend on groceries, or on gas, or on eating out.  Then you can start working on your spending habits.

A fatal mistake is to sit down and say, "Ok, I'm only going to spend $X on groceries" when really you have no idea how much you normally spend.  Improving your spending habits will come easiest with gradual change.  For instance, if you notice you spend $150 per month on groceries, maybe next month you should make your budget $135 and try to stick to that for a few months.  Then make it $120 for a few months.  Over time, gradual changes are easier to work into your daily routine than broad sweeping change.