I’m embarrassed to admit it, but I love crunching numbers, especially when it comes to working out my monthly budget. However, I learned how to make a budget through trial and error and I’m still working out the kinks. So when I came upon this infographic and read the fine print, I realized I’ve been doing it all wrong! I’m supposed to define each category and allocate an amount (usually based on percents) first, then align my spending to fit that budget – or be “Pro-Active and tell my money where to go.” I’ve always done it backwards; tracking my spending, figuring out where I can save money, then creating a budget that sort of fits my spending patterns.

Look closer at this definition if budget:

Budget Definition
Budget Definition

As much as I have learned about personal finance through the school of hard knocks, there is still more to learn. At least I can pat myself on the back for the fact that I actually track my spending. Check out some more budgeting facts below:


  1. Greg@Thriftgenuity Reply

    I could stand to be a little more proactive with my budget as well. I know the fixed expenses pretty well, but the variable costs I could nail down more. I like the graphic, especially in the suggestions it gives within the categories. I think by breaking it down to smaller categories, it allows for more specific planning on how to cut costs rather than looking at it in one big picture.

    • @Greg – I have a similar problem – fixed expenses I’ve got under control, it’s the variable ones that seem to slip by me.

  2. I’m not very good with the whole budget thing. We just try to be frugal everyday. We do keep track of our monthly spending though so we’ll know when to cut back and why.

    • @Midlife Finance – I like the idea of budgeting and crunch numbers every few months, but my biggest challenge is staying inside my “ideal” budget. I’m constantly blowing it! 😉

  3. SB @ One Cent at a Time Reply

    While I do not agree to stop activities. They are ones we live for. I do support eating cooked meals and eating out only once a week.

  4. I think, this is exactly what many people do. They at first create a budget and try to align their spending to it, but soon slip into aligning the budget, hehe. I am a great example of it. So I still keep track of my spending, but I am more than horrible in budgeting. Well, that will be my next goal, I guess.

    • @Martin – I love “budgeting” because I love crunching the numbers, but I really am terrible at sticking to it because I’m not telling my money where to go! Oh well. I guess it’s something I can improve on.

  5. The saddest part of this infographic is the statistic on how many people don’t have enough saved to last a month – 38% !! I’ve watched so many friends get let go or companies shut down and it almost always takes longer than a month for them to find something new. This is what all the budgeting bloggers need to take on as their mission, change this statistic!

    Great information, thanks for the post!

    • @Krista – It’s scary, but true. Most people can’t live on their savings for more than a month. It’s definitely a stat that needs to change, people need to change and save more. It’s hard to do, but with baby steps, it can be accomplished.

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