Budgeting - Part 2 - Reality Check

Following on from yesterdays post. . . I sorted out what I want (and need) on a monthly basis and how much that will cost me, and, basically discovered that my 'ideal' lifestyle is a long way off what I can realistically afford. Sure, I could have the lifestyle and the manicures that I crave, but the only way to facilitate that would be to get into debt and that's not gonna land me a foot on the property ladder any time soon.

So, my first piece of advice is get your priorities straight at the very beginning. Unless you're earning lots then chances are you won't be able to lead the lifestyle you'd like and save. Are you prepared to sacrifice the little treats in order to get the house/car/holiday that you want? What's more important to you - living for today, or saving for tomorrow? Starbucks or Stamp duty?

When I first started saving I foolishly thought I could have it all, but now (especially with the doom and gloom of the credit crunch and increase in the cost of living) I realise that's simply not the case and if you do want to save then there are going to have to be certain sacrifices.

So, if you're set on saving, have a think about what you can realistically sacrifice for me it was:

• Dentist
• Glasses
• Hair
• Prescriptions/Over the counter drugs
• Magazines/Newspapers
• Career Development (e.g. paying for courses etc. . .)
• Clothes
• Exercise
• Facials/Waxing/Massages
• Socialising
• Toiletries
• Charity donations

That's not to say that I never fork out for these things. I'm due a dentist appointment shortly and a hair cut. Plus, I've given some money to charity this year. And, I'm daring to go out socialising tomorrow evening! But these are the non-essential items, the ones that come out of what's left at the end of the month, rather than setting money aside specifically for them.

So, how is the budget shaping up now? Stay tuned for part 3. . .