Personal Profit Margin and Budget

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Does money "burn a hole in your pocket?"  Are you a compulsive spender?  A budget can be a practical solution for these problems.  A budget is best done monthly and is a spending plan ahead of time that shows how much you plan to spend in every category of your life.  Categories include grocery or recreation for example.  

Are you good with your money and really not a big spender?  Then a montly personal profit margin would be what you would want.  This occurs at the end of each month.  You basically record all of your income and expenses through out the month.  At the end of the month, subtract the difference between income and expenses and evaluate.  Where do you need to spend less?  Or do you need to earn more?

Throughout the years, I've heard various practical suggestions on how to implement a budget.  Some examples are taking out cash at the beginning of the month and separating it into envelopes labeled by category or using colored paper clips where each paper clip color represents a separate category.  You need to pick out a system that works for you and keeps you accountable as to how much you spend each month.  

An accounting ledger or record keeping notebook can also be useful for both budgeting and estimating your monthly profit margin.  

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