What Exactly Does a Reasonable Budget Does Looks Like?

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A reasonable budget – do you have one? Financial discipline requires that you budget for your finances. Failure to budget can land you into financial problems. You must know where your funds go every month. That way you can be able to make adjustments where necessary. But having a budget and following it are two different things.

Are you like that person whose budget demands that he use $50 for entertainment but ends up using $150 every month? This is a clear indication that your budget is unrealistic. Studies show that a good number of people with budgets do not follow them, but the few who follow them are in total control of their finances. This blog is meant to help you come up with a reasonable budget.

An Overview

Sometimes it can be very challenging to determine the portion of your income that should be devoted to your home expenses. You need to pragmatically design your budget. Failure to be guided by it means either you did not have solid reasons to establish it, or perhaps you are not just discipline enough when it comes to financial matters. Still, some people feel a budget can only be used effectively by people with lucrative salaries.

In all honesty, this is a mistake in reasoning and shouldn’t be led into believing so. In fact, the most important thing an individual living paycheck to paycheck can do is to form a budget and be guided by it. This way it can be easier to identify loopholes in his spending and make relevant changes.

If you really have a budget and tries hard to stick to it but still your financial situation does not get better, you may have designed wrongly. Think about the situation portrayed at the outset. Instead of spending $50 on entertainment, you end up spending $150. This means the figures inn your budget are not realistic. How can you fix such a problem? Well, you cannot just increase the allocation unless your income significantly increases.

The best thing to do is reduce your entertainment down to at least meet halfway. You can increase the expenditure to $100 and lower your real spending down to this value. Besides, statistics show there are a number of things individuals do not include in their budgets but ending consuming the best part of their monthly income. The following section of this blog will help you see what a budget should include.

The Contents of a Reasonable Budget

We acknowledge the fact that it is just so hard to design a realistic budget. A budget should stipulate the things you need to include in your financial plan every month. What about the costs of unforeseen occurrences? In this section, we are going to share some basic ideas of designing an appropriate budget and adhering to it. We begin by looking at what it should include…

Regular bills

These are recurrent expenditures on monthly basis. This should include some basic necessities such as rent, food, transport costs, and electricity. Many people fail to include these bills in the budget but in reality, they are an integral part of their spending. They are just so important and should never be ignored. Any budget design or application should have a section for monthly bills. You should aim at minimizing your expenses and save for unexpected events. Consider doing the following things:

  1. Is it possible to get a cheaper house or where to live? Do not hesitate to shift. In fact you can get a better house that is cheaper than your current one in the neighboring.
  2. Get a less expensive phone plan
  3. Contract with an appropriate insurance company
  4. Go to the grocery store just once per week to avoid wastage of food.  Alternatively, you can have a list of the things you want from a grocery store before leaving. Once you are there, simply pick the things on the list and live immediately to avoid unnecessary spending.


Do you owe others? Is it a student loan or a credit card? Make sure payments are reflected in your budget. It could even be medical bills you are yet to settle. Well, we acknowledge the fact that it could be so hard to prioritize a number of high interest loans at the same time, especially if you have a tight budget. You can check Instant Loan for more affordable rate. Let’s also try to do the following things:

  1. Try to pay small debts. This can work perfectly if you want fast progress. You will feel motivated to continue repaying.
  2. Compare loans and attack the debt with highest interest rate and you will save a lot of money you should have paid as interest.
  3. Consider your credit history. If you want to have a good credit history as well as a good credit score, consider paying credit cards.
  4. Make sure you have a payment plan

Emergency funds

You never know when an emergency will confront you. Many individual consider this as the last thing to be included in their budget. Do not wait up to the point when you really need one but you do not have in order to create one. We do not want you wish you should have saved. It does not matter how much you save, emergency funds are just so important. It is better to have that little than nothing at all.

Other non-basics

There are some things though not basics that must be considered. For instance, where do you get funds to for birthdays or Christmas gifts? Or perhaps cars registration? It is important to plan for such things. Do you have pets? Where do you get funds to meet their bills such as grooming


It is important to have a budget that you can stick to it. Knowing what to include in a budget can be challenging. This blog has discussed four basic sections that your budget should have. Once you have set up your budget, try your level best to stick to it.