For most, “budget” makes them cringe and feel either angry or sick.  Sound familiar?

As you work with your bankruptcy attorney to improve your finances, a budget can keep you moving forward.  Let’s look at common reasons budgets fail, and how to make a budget your friend instead of your enemy.

1. Unrealistic expectations. Don’t start a budget in the land of “should”…I should be able to live on this; this should be enough for groceries; I should be able to eat every meal at home. Sound unrealistic?  For a budget to work, it must start in reality, where you are today.  For the next 30 days, write down everything you buy and what it costs, from 50¢ for a soda to your housing.  Then add all your expenses up, breaking them down into categories:  eating out, groceries, dry cleaning, utilities, payments on existing debt, gasoline, kids’ lunch money, home maintenance, etc.  This is your “Monthly Expense Sheet” First Draft. (more…)