If you struggle to create an effective budget, consider the following ideas:

1. Be realistic. When estimating monthly expenses, consider typical monthly amounts. If you normally spend $300 on groceries, don’t write down “$200″ in your grocery category. Write down “$300″ and then aim for “$200″. Underestimating will get you in trouble.

2. Be patient. Remember, if you have never lived on a budget, it’s going to take you (and your family) some time to adjust. Give yourself a break and spend the first six months tracking your expenses and fine-tuning your budgeted amounts.

3. Be informed. Gather as much information as you can about annual pre-pay discounts, discounts for grouped services, discounts for changing companies, tax savings, rewards programs, paperless billing discounts, etc. Call the companies with which you do business and ask questions about discounts, referral programs, and customer retention bonuses. The more information that you collect, the better decisions you will be prepared to make.

4. Be communicative. If you are married, talk to your spouse about weekly goals, monthly goals, yearly goals, and future goals. Talk to your kids about their responsibilities around the house. Get everyone in the family involved in decision making, goal creation, and plan implementation.

5. Be consistent. Find a budget system that suits your lifestyle and stick with it. Set aside a specific night of the week / month to create / tweak your budget.

6. Be stubborn. Your friends and extended family will might think that you are “crazy” for choosing to live on a budget. Like teenagers in high school, you’ll surely feel “peer pressure” to live just like they do. Resist the urge to abandon your budget, especially in the face of negative comments from friends and family. Seriously, don’t let broke people boss you around.

7. Be generous. Every budget should include a designated amount for giving. Personally, we budget an amount for giving, charity, and gifts.

8. Be responsible. While I believe in helping the less fortunate, I’m also of the opinion that it is NOT my responsibility to contribute to every cause. I cannot afford to buy donuts, chocolate bars, calendars, wrapping paper, and cookies from every organization that asks. I have learned to remove guilt from the decision making process. I budget an amount for giving, and that’s the amount that I give. (Side note: I am, of course, speaking of general giving to my church, various charities, and worth causes. There are times when a special need arises and I am compelled by conscience to give “above and beyond” any budgeted amount. When a friend or family member faces a critical need, my budget must take a “backseat”.)

9. Be aware. Pay close attention to how you deal with “budget busting” situations. Do you spend more than you planned for gifts? for food? for gasoline? Why do you do what you do? Face it, we can write down any numbers that we want, but we have to actually stick to a budget for the budget to mean anything. Keep track of the amount of money you spend and also take time to think about why you spend the amounts that you spend. Do you spend more when stressed? tired? hungry? distracted? Learn to avoid situations which might lead to overspending.

10. Be different. Perhaps you could be the one person on you block who doesn’t own a television set. Maybe you have decided to collect aluminum cans. Suppose you stopped renting movies and started reading library books. Think about what would happen if you stopped drinking sodas and simply drank water. Every decision that you make doesn’t have to be “radical”, but you might want to “different” in one or two areas of your life. Saving money can be relatively easy, especially if you tailor you budget to your individual personality. For instance, I’ve chosen to live without borrowing money. This makes me “different”. It also makes me “awesome”.

If you are looking for a customizable, easy-to-use budget, consider the You Need A Budget. I’ve been using YNAB for many, many months, and I proud to have YNAB as a sponsor of No Credit Needed.

One more quick note: A quick update on Steven, the teenager from our church who was recently injured in an accident. He is still in very serious condition, but he is able to speak, and he is communicating with friends and family. Thank you for your continued prayers.