As Money Mentors coaches, we see many frustrated budgeters who are working hard at their budgets with little success. When we look at their system, we see that they are bookkeeping instead of budgeting. They are keeping detailed records with spreadsheets or ledgers, but they are still overspending every month! That is one of the reasons we created our seminar “Achieving Your Financial Goals”. We have plenty of great suggestions for staying on a spending plan. One of our favorites is what I call “The Subtraction System”. Instead of just recording the expense, and waiting until the end of the month to find out if the spending was on target or out of control, here is our suggestion:

Subtract the expense immediately from the budgeted amount.
Record the amount left for that budget item for the rest of the month.
Keep subtracting in that category throughout the month.

We see that as the guilt-free spending zone. If the amount remaining in that budget category gets too close for comfort, it is time to make new decisions in order to succeed on the spending plan. Now that is budgeting not just bookkeeping!

Would that suggestion work for you?

Money Mentors offers strategies and suggestions for improving personal money management through the seminar “Achieving Your Financial Goals”, or through personal appointments with one of the Money Mentor coaches.  Sign up at www.moneymentors.ca