1. Create the correct structure

Understanding what your expenses are and where your money is going is only a small piece in the puzzle. Your budget needs the missing piece that a list doesn't give you.

Grouping your expenses into 4 key categories helps you determine the priorities for your finances and makes adjusting your expenses in the future easier to do while maintaining the ability to save regularly.

Your structure should separate your finances into the following categories, Fixed Expenses, Lifestyle Expenses, Debts and Savings.

2. Set a realistic amount for saving

No matter what your income is, everyone has a minimum savings capacity. Saving money regularly fails when the amount you aim to save is set at a level you aren't yet capable of saving.

By establishing the right level of savings for your personal situation, you can begin the process and actually save money. As time goes on you will find that you will be able to increase this amount.

The MMS system automatically calculates this for you and removes the guesswork and helps you get it right from the start but if you aren't yet ready to use a proven budgeting system our recommendation is to start with 5% of your income and readjust this after a couple of weeks if necessary.

3. Budget longer than your pay cycle

This may sound like hard work but it's one of the secrets of a good budget. When you budget according to your pay cycle you will often make reactive decisions with money.

By establishing a budget (plan) for a longer period of time you have a greater awareness of future expenses and how you will make your money work to meet these expenses rather than continually juggling bills.

With the MMS system you can build out your budget/plan for a whole year in under an hour and we can even review your plan for you absolutely free. This is a great way of getting the confidence your budget/plan can succeed and you have your numbers right.

For anyone new to budgeting we recommend you aim to set your budget for the next month as a starting point. After a month you will have a good idea on your actual expenses and can now try setting up a 3 months budget.

4. Work to your plan and increase your awareness

So far you have done the following

• Created the right structure
• Added a regular amount for saving
• Considered expenses that aren't immediately in front of you.

It's now time to work to your plan. Review your expenses weekly.

Overspent? Then consider how you can spend a little less next week to balance things out. Underspent? Great just don't rush out and spend that money somewhere else. Monitor your expenses for a full month before you consider making changes.

With the MMS system this can be done in less than 10 minutes each week and helps you keep track of your progress. You can even set yourself reminders so you don't forget until you have built the habit.