Tips for Creating a Sound Budget

What makes a good budget? Is it simply being as detailed as possible, or is there more to it than that? Surprisingly, there are many aspects of a budget that will determine whether or not it will work for you. Here is a list of the top 10 things that make up a good budget:

1. Categories that fit your personal situation. Default templates and guidelines are good, but to really have a budget that works, you need to have categories that fit your unique situation.
   
2. Accurate income projections. Not only do you want to have accurate income projections, but you want to have realistic expectations. When push comes to shove, be more conservative with your income projections.
   
3. Having the right amount of expense categories. Detail is important, but having too many categories can do more harm than good. You want to be able to separate where money is going, but you also don't want to become overwhelmed.
   
4. Continue reading for the rest of the top 10 list...