I know at then end of each month when my husband and I sit down to reconcile our
checking accounts and go over our receipt and allocate each receipt to the category
of spending we have set up, our budget tends to look different than reality. We set
up our budget as a road map and then we have to vary from that for various reasons
but we definitely try and stick to it as best as possible.
We have a spread sheet made up that has the money that comes in, the money that
goes out and then off to the side we have columns that has categories for where our
money is spent. Whether it is groceries, monthly bills, clothes, entertainment or our
animal expenses. This is helpful for the breakdown of where our money goes, it helps
us make our money work for us, instead of us working for our money.
As for our tax withholding it is important to start off with the correct tax withholding
and stick to it through out the year so you know what is going to be withheld and so
you know the net amount that is going to be in your paycheck. This way you will also
know if the right amount is being held or if you need to set money aside so at the
end of the year your can pay taxes.
