You may have to forgo some expenses if your income is not sufficient. After assigning dollar amounts to each item, you may need to make adjustments. Budget surpluses allows bills to be paid off early or puts money into savings to be used as a contingency fund for future emergencies. In the case of a budget shortfall, options include cutting down variable expenses like utility and telephone bills, clothing, recreation and entertainment, etc. Also, increase your income through a part-time job, additional loans, or family assistance.
Monitor expenses closely.
Variable expenses can quickly take over the budget. By keeping accurate records of income and expenses, you can tell how well you are sticking to your financial plan. You can determine reasons for surpluses or shortfalls and begin to better anticipate them. Compare actual income and expense figures to the ones budgeted. Make adjustments during the next planning period.