Budgeting Personal Allowances (1253)

Do you want to develop a successful budget?

Be sure to provide for personal allowances for everyone in your plan. Then give each person total control of his or her allowance. By providing everyone with an allowance, no matter how small, you are giving everyone money to "blow" when the urge comes.

Don’t try to use someone else’s budget and expect it to work for you. When you see a budget in the newspaper or magazine, realize it is for a particular situation or for an "average" or "typical" family. Everyone needs to tailor-make a spending plan to fit his own particular situation.

Distinguish between wants and needs. Buy what you need first. The wants belong in the "what’s left over" category. Also, be sure to borrow with care. Remember, you create a fixed expense each time you charge something or pay "on time."

Finally, plan and develop an emergency fund. Aim to set aside at least three months’ worth of expenses to pay for emergencies (e.g., car repairs) as they arise.

A budget need not be a financial "straight-jacket." Successful plans allow some discretionary expenses and provide for financial needs and emergencies.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

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