What is it that makes us so lazy when it comes to budgeting? Somehow, most of us lack the discipline and patience required to deal with the daily checking and balancing of accounts. The fact remains that unless we get down to the "nitty gritty" and realize where we are going wrong and rectify the mistakes, it will always be the case of "putting your money in a bag full of holes.."

Never spend more than what you make

This is the time to make a list of household expenses and go over it with a fine-toothed comb. Check out each and every aspect of your weekly/monthly expenditure. A day to day record of where your money is being spent will give you the whole picture. No matter how exasperating or time consuming it is in the beginning, this habit once inculcated, will soon get interesting and you will find yourself looking for ways to cut costs.

It's time for a reality check

Keeping track of your spending habits helps you to realize just how foolish you have been. In about three months' time, you will have a pretty good idea on what should be a definite "no-no" and what should stay. Chuck those habits that were born out of crazy impulses and left you saddled with huge debts. It is time to make decisions on where and what you are going to spend your money.

Calculate your expenses

Keep a list of necessities and family expenses in your wallet. Keep aside the money for each item and put the rest away. It is better to deposit the extra money in a bank savings account (away from your eyes) so that you are not tempted to spend it. Better still, your bank can do it for you. In this way, every time you pull out your wallet and see the list, you are reminded of the fact that you have just enough for your needs and not a cent more to waste on frivolities. You will be thrilled to see the extra cash accumulate in that savings account.

The old fashioned way works

Sometimes the old fashioned way of keeping envelopes marked "food", "Electricity", "transport" etc helps. In this way one knows just how much is spent week after week, and more importantly one is not tempted to withdraw more cash than is needed at the ATM. The more you save, the more you will want to beat your last effort of saving and do your best to double it.

Set limits

The only pressure you should have regarding finance is the one you put on yourself to pay of particular bills in a given time period set by you. Determination to move towards the goal will ensure that you will not yield to temptations to buy and spend on things you don't really need. You can remind yourself that there will always be cars, jewelry, and houses for sale ONCE YOU REACH YOUR GOAL.