|Simple Things About a Budget|
by Ord L. Morrow
I don't know the date this was written, but judging from the yellowed folder I found it in and the numbers on the example budget, I'm guessing it's from the mid to late 60's. Don't let that stop you! His common sense approach is timeless.
Possibly your income is $150.00 per week. Set up your budget so that you know how much must be put into each account each week. It may be that you will want to put your whole check in the bank. Sometimes this is wise, sometimes not. To handle money in any way takes some discipline. It may be better to put a part in the bank and to have some cash at the house, as long as you know what it is for.
I will give you a page of illustrations based on putting part of your check in the bank each week (or payday) and putting the other part in a box where you have some envelopes marked for each account. For instance--rather than to write a check each time for groceries, you place a certain amount each week (or payday) in an envelope marked "Groceries." This way a check need not be written each time groceries are needed. Discipline will need to be exercised that the grocery money is not spent for other things.
A note book is necessary to keep track of the money in the bank. On the first page of the note book will be the total budget. Then each item in the budget has a page of its own. To illustrate: "Car" has a page for gas, expense and new (car). Each week (according to the sample budget) $5.00 will go in each of these items. So the first week will show car gas--$5.00, etc. As you carry out this system throughout the budget, you will know first what amount of money you have in any budget item and secondly, you will know at the end of the year how much you spent for any single item. When you spend money for any budget item, you adjust the book for that amount.
The first year you may have to borrow from one fund to be able to pay what you owe from another fund. Let us say that at the end of the month, you have $20.00 in the car gas fund. However, you receive a bill for $22.00. You may have to borrow $2.00 from the clothing fund so that your gas fund is not in the red. If however, you see that next month the gas fund will surely be less than $20.00 you may just want to put the gas fund in the red until the next pay check and balance it then. It may also indicate that you need more than $5.00 in the gas fund. By adjusting and watching you will have a working budget within the year. Your guessing days will be over--you will know what you have, what you owe, what you can pay and where your money is going.