What happens when you fail to put into practice your budgeting plan? If that happens, then you lack the proper discipline.

Take for example my case. I planned to put 4,000.00 pesos into my investment account today. But guess what, I only managed to put half of it today. Now, why did this happen?

• I was thinking of putting the other half on my next payday because spent money for my birthday celebration a week ago.
• Although I planned to put 4,000.00 pesos on my salary 15 days before, it didn’t happen because I didn’t effectively manage my August 15 salary. That is because I spent money to pay for domain and hosting on another website.
• There came unexpected expenses (eg. ran out of Gasul, gave money for my parents, and many other tiny little expenses that when accumulated gets a big chunk out of my salary.)

So basically, it all boils down to proper budgeting. So how do we really make a budget? Here are some pointers for you to follow. This is my budgeting mantra;

• The first significant step is to change your thinking about money, shift your attitude toward spending, actually focus on saving money, planning ahead and driving for success
• Develop a greater awareness of how you earn, manage, save and spend money
• Awareness of how others would lure, entice and want you to spend your money
• To stop living with a false sense of wealth and security, while over-extending your self and financial resources, beyond your means. Do not envy others and lust after things that they might have or even worse, get deeper into debt to compete or keep up appearances. It is counterproductive and can ruin lives!
• Delay purchases
• Set solid financial and budget goals for yourself and your family that you can work on individually and collectively to achieve together
• Set spending limits and stick to them
• Do not make ends meet utilizing credit cards, stay away from ATM machines, cash, cash advances, do not cheat on your budget
• Understand your income
• Understand your expenses
• Set a few realistic financial goals
• Know your own habits, spending, temptation, and where the areas of risk and exposure are.
• Set up savings and spending mechanisms that work, reserve and growth accounts and have the right number of credit cards
• Make an income plan
• Plan your obligations and must pays
• Plan your necessities and look for ways to economize
• Set aside pocket money for daily incidentals
• Create a family allowance to cover entertainment
• Create a personal allowance
• Balance and consolidate, wise decisions and trade-offs
• Live happily on a budget
• Welcome to frugal living mode! Cutting back on living expenses
• Re-examine why you work and how you live
• Stop tossing your hard-earned cash away
• Shopping, overwork, stress and debt
• Celebrate when you have money left over at the end of the month

Budgeting: Discipline is the key

Now, based on my experience, following these set of principles is really tough unless you employ the proper DISCIPLINE. Without discipline, these principles would just be a worthless list unless you’ll initiate to learn how to implement it. We have diverse reasons and motivations for budgeting. As for me, I try to meet my budget because of my investing goals. How about you? What are your reasons why you would put on a budget? If your main reason is to gain control of your financial life, pay your monthly bills and cut of your excessive spending, then a simple budget plan backed with proper discipline is the key.

Happy saving!