Are you running out of money on a regular basis? Incurring debt isn’t the answer to your problems. A lot of people find it hard to save for a rainy day and even more find it difficult to stick to a strict budget. Some people are really good at successfully adhering to their budgets and still find that they occasionally run out of money anyway. This can be very frustrating. You may be tempted to give up, but don’t. Use each month’s budget as a guideline for the next. Note the extra expenses that you incurred that you didn’t plan for. Create a budget that fits your life and it could really pay off. Here are some tips to help you stay afloat and avoid many of the common budget planning mistakes that are so easy to make.

When most of us decide to plan a budget, we keep it way too simple. This doesn’t mean that your budget needs to be confusing or planned down to the cent, but it does mean that you need to put some thought into your planning process. You need to pay very close attention at first to come up with a budget that fits your spending habits. Think about keeping your budget realistic. This is a good base for creating a set of rules for yourself. The purpose of the budget is to discipline yourself into not breaking the bank from paycheck to paycheck. Most people spoil themselves a little more often than they plan to and find themselves in a situation where they thought they had enough money for the month and they run out earlier than expected.

The first move is to simplify your bills. If you pay only the amount that is due every month for your utilities and credit cards, you will find yourself not ever fully knowing what to expect. If you pay a set amount every month, then your bills are always the same. I like to round up the amount that I owe. If my cell phone bill is usually $62 per month, then I will pay $70. All of my bills add up to a round number that is easy to keep track of. Plus, as an added bonus, if I run into trouble one month, I’ve overpaid for the past few months and I may not have to pay that bill at all, or I’ll owe significantly less than I normally would.

Figure out what your power, electric, water, sewage and other utilities added up to for the last year. Let’s say that you paid $3,764 for your utilities last year. Divide that amount by twelve months and you get $313.66 per month. Round up and actually pay $400 per month. If you can afford to do this little bit extra, then you’ll enjoy two months off of paying bills every year. In ten months, you’ll have paid $4,000. That’s a little more than your bills may actually be, but it should take care of small fluctuations that may occur. You can take a month away from paying bills in December for Christmas, and also in the summer for a vacation. This is one way to circumvent the fluctuation problem that arises in most traditional budgets.

Watch what you spend and take everything into account. Don’t forget oil changes, probable auto upkeep, medical expenses, clothing and money to go out and enjoy yourself. Set money aside in various accounts tagged for certain things. Enjoy sticking to your budget. Don’t see it as a harsh discipline system, but as a self-rewarding system that you are in control of. Remember to avoid revolving credit card debt that can drag you down. Sometimes a payday loan or cash advance is a short-term solution that can be paid back more quickly and keep you in control for a larger part of the year.