The Two Most Important Fixed Amounts in a Budget

1) Pay Yourself First Account.
Allowance...If you penny pinch to the point where you have no money left, you will end feeling resentful, frustrated, and disappointed with the whole budget idea.
What is your realistic allowance that will fit in your budget? This is money that you can do with whatever you please (must be healthy or positive for yourself). You must allow for little splurges and yet not ignore the necessary expenses.

2) Savings
This should be a percentage of your paycheck/income. This should not be a "what's left over amount...This should come first.

There should be 3 different savings accounts.

a) Reserve - for upcoming known bills and expenses listed on the yearly budget worksheet

b) Emergency - Should be built up to be 3 months worth of take home pay for unknown disasters.

c) Goals - Wish List

Once you have saved enough money for the reserve and emergency savings accounts, you will realize that it is possible to save money. Saving for your Goals soon becomes more exciting and challenging as you realize that reaching your goals is now possible.