When you hear about living on a budget, what comes to mind? I used to think about a budget the way I thought about dieting. Most of us quit diets and go back to being out of shape.

It only stands to reason that our incredible link-finding brain parallels this belief. That is, when the “budget is over,” our money game will go back to being a hot mess.

Individuals successful with permanent weight loss don’t think in terms of short-term diets, but rather lifestyle changes. And budgeting is no different. Budgeting is a lifestyle change that leads not to bondage, but freedom. And like the dietary lifestyle change, the habit gets easier with practice.

And now my tools of the budget trade…

Spreadsheet

The centerpiece of our budget is an Excel spreadsheet. I’m not as familiar with Google Sheets or Numbers (and I’m a Mac!).

According to my net worth tracker, we started budgeting like this in April 2009. However the oldest worksheet I have is September 2010. Maybe they self-destruct or something after a while…

In any event, we have over 100 monthly worksheets in our budgeting workbook. Each month I just copy the previous month’s work sheet, rename it, and change the contents and numbers as needed. (I demonstrate all this in my free new budget course plus show you how to make a budget worksheet.)

The worksheets have grown. Every few months, I seem to find something else to keep track of. My latest addition is the Wealth Index Formula from The Millionaire Next Door by Thomas Stanley and William Danko. I am working at getting to PAW, Prodigious Accumulator of Wealth.

Calendar

Each year, we use a simple 12-page calendar from timeanddate.com for our written record of what’s due when. Things usually get added here first and then transcribed into the spreadsheet. This is convenient for when I don’t feel like getting my computer out.

Composition Book

We use a cheap 50-cent composition book to track “non-budget” items. And they last three years! We have taken to calling it our “black book.”

Our “finance week” start on Friday, payday. My wife and I get on paid alternate Fridays. We record every cash outlay at the top of a new page beginning each Friday. We keep a running total. If we hit our weekly max (based on the spreadsheet, we have to wait until Friday to spend more. Simple, but it works.

So…

There it is. Our budget system is not elaborate. Simple to implement means easier to stick with… like the dietary lifestyle changes.

As you get started, know that you will not be perfect out of the gate. We made many mistakes leading to numerous tweaks.

Don’t get bummed out when you falter. Use it as a learning experience.

If you want more info on our budget process, subscribe below, because I am putting the finishing touches on a free budgeting course over at my school, marknoldy.teachable.com.