1.4.5 Keep your budgeting system alive

Whether you use a budget or envelopes, your budgeting system isn't a one-time thing. To make it work, you need to review it regularly. At first, do this weekly. Once you are certain that it is accurate, review it monthly.

• Check to make sure that your income and expenses figures are still realistic. If your actual spending is very different from what you estimated, you may need to adjust your figures.
• Make sure you are keeping up with your savings and debt repayment commitments. Can you increase the amount you save or repay each month?
• If you are sliding into a deficit, take a look at where you can cut your spending. See the section Reduce unnecessary spending for suggestions. Also, check out the Credit and debt management module.

Try both a paper budget and an envelope system, to see which works better for you. You may find that both are useful: a budget to plan your future spending and an envelope system to manage your current spending.