It’s extremely easy to blow through a budget. Part of the reason is that we often underestimate our spending. One simple way to combat this is to err on the side of overestimating.
Personal finance blog Femme Frugality recommends more or less the same thing. Her golden rule for budgeting? “Budget Liberally. Spend Conservatively.” Femme explains:
Budgeting liberally means when you think you’ll spend $75 on gas this month, you budget $100. It means that however much you think you’ll need, you schedule in more. It means not fudging the numbers to an unrealistic low in order to fit your income.
When you get your numbers, you can see if you need to hustle to bring in more. This is far better than getting to the end of the month and realizing you should’ve hustled to earn more, because now you don’t have enough food to put on the table.
Of course, spending conservatively means saving money when you can and being mindful about your expenses. It’s a simple rule to follow for better budgeting. Check out her full post at the link below.