Beginner budgeters like to tighten down their spending too much. They end up blowing their budget and reverting back to their old ways. If you’re a beginner budgeter, don’t budget your money down to the penny. Tighten the screw slowly.

A successful budget is a flexible budget. It should be able to help you during tough times and it should also allow you to reward yourself if your financial situation becomes better than expected. A looser budget that’s easier to keep is better than a tight budget that’s impossible to maintain.

Check out the Binary Dollar 3 part series Effective Budgeting: Why Budget? Building A Budget. Tracking a Budget.

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I’ll trade you this $10 dollar bill for your $10 dollar bill. Deal?

Budgeting on paper and pencil isn’t for everyone. Money can be hard to track when it’s spent using a variety of sources, such as credit cards, checks, and cash. It’s tough to tell when you’ve exceeded the $200 you’ve budgeted for yourself during the week.

Use cash exclusively to make all of your purchases during the week. A quick glance at your wallet will gauge how well you’re spending your money. You’re not doing so hot if it’s mid-week and your wallet is empty. Conversely, you can consider withdrawing less money for the next week if you have plenty of cash leftover.

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