My Personal Budget for 2011

This year, 2011, is going to be a year of change. I am definitely not going to spend as much as I have done in previous years. Every New Year I create a budget for the year ahead. The budget includes everything from entertainment costs to household running costs. Every area within both my personal and professional life gets analysed and I see where I can cut back, or cut down. This year I am definitely going to cut down on my food bill. The amount I pay out per month for food, both eating in and out is ridiculous, especially when you think what or where that money could be put to better use.

I plan to budget more rigorously and stick to my budget every month, with regular reviews every 4 weeks. I am going to be reviewing my budget as I go along because I believe there are always areas that can be cut back even further, or even dropped. Non essential areas and luxuries such as spa treatments are where I plan to make the most cutbacks.

Budgeting is a way of life for me and I find it to be very beneficial, not only because I save money, but I feel that saving money also helps increase my personal wealth year on year. Saving money and making money go hand in hand, and this for me is the real beauty of budgets.

Within my new budget for 2011 I have made a lot of improvements. For example I have added a new section called emergency funds. I have added this area because I realise that I need some rainy day funds in place should I lose earnings. Although some people see rainy day funds as a non essential, in my position I feel that it is totally relevant. I came to this decision after looking over the last 5 years budgets I have had in place. I have noticed that I strongly stuck to my budget in my day to day life. However, I lose control of the budget when an emergency such as the car breaking down occurs. If I had planned more for this emergency within my budget it would have given me more peace of mind and less stress, and this is why I am including it in my new budget.

Budgeting more wisely throughout the year and keeping track of what I spend on a daily basis will improve my happiness, well being and bank balance. I will be totally in control of what is going out and coming in, month on month. I know for me a budget is always useful to have, so that I can make the most out of every area within my life.

More from this contributor:
Increasing your personal wealth
How to manage your money
Saving money and budgeting