How to Create a Budget You Can Stick To
For example, Campbell and his wife plan their budget about six weeks in advance and agree 100 percent on all expenses.
"We have a rainy day fund for emergencies, and we pay cash for all expenses outside of monthly recurring bills to avoid overdrafts or arguments over mystery charges that weren't discussed in advance," he said.
They also have agreements about debt and borrowing money. "We also don't borrow money other than the primary mortgage," said Campbell. "And we believe that is key to staying afloat financially and staying ahead — no matter what happens in the economy."
In addition, the couple budgets for regular contributions to investment accounts and vacation funds. "For retirement, we invest 15 percent of our income every month into Roth IRAs, and we also contribute monthly to our kid's college 529 funds," he said. "For vacations, we do take one or two per year, and we either save up months in advance or — since my wife is a teacher — she sometimes will take on a summer job to help."
The couple's budget even includes a line item for holiday spending. "We like to set aside $90 a month for Christmas spending so we aren't scrambling in November or tempted to borrow money," added Campbell.
Sit down with your partner, and come up with a budget that works for your relationship. And, meet regularly with your significant other to discuss and amend your budget as needed.
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