Whether you call it a budget or a spending plan, an idea of how much
you can spend on what each month is a remarkably liberating thing.
After you’ve put aside money for savings and important expenses such as
I keep my monthly spending plan on a ruled 3×5 index card labeled
“Budget for August 2005.” I divide the card into three columns:
category, estimate, and remaining budget. At the beginning of each
month, I write down the categories and estimates in ink, and the
remaining budget in pencil. Throughout the month, I’ll regularly
update the remaining budget entries. If I want to spend more for
something, I can reduce the budget of another category.
Let’s see how well that system works this month!
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