![]() For instance, while planning for the miscellaneous expenses, I had not factored in the car parking fees which accounts for $120 per month. Being unrealistic leads to an inefficient budget since the spending can be more than the income. Being realistic means making the correct estimates for spending items, which makes it possible to attain the expected goals. One of the biggest challenges in maintaining the budgets is being unrealistic with the spending items especially on items that constitute variable expenses. Challenges of Maintaining a Personal Budget In addition, I allocated more for other non-essential items such as cloths, and increased the target for monthly saving. I was however able to vary my spending by allocating for more money for personal entertainment expenses for instance recreational expenses and savings for vacation. When I changed my basic income to 10,000 per month, the tax expense increased considerably. I tried to accommodate every spending item within the expenses categories. While I tried to consider every item of spending, it was challenging to become overly thorough with the finer details of my spending, especially on miscellaneous items. These items are not constant for every month and can sometimes constitute a significant percentage of the monthly expenses (“Budget for Miscellaneous” 2014). I also considered the miscellaneous expenses such as charities, cost of magazines and newspaper, and gifts to friend and families. Allocating for emergency expenses helps in catering for items that have not been considered in the budget, like unexpected medical bills (Kossman, 2013). Before entering the expenses for non-essential items, I had set a goal of saving $250 for emergency purposes. I ended with estimating the monthly expense on non-fixed items such as expenses on personal expenses such as drinking with friends, movies, saving for vacation and recreation expenses. ![]() Expenses of fixed cost items are relatively easy to identify because they constitute a monthly routine. After entering the monthly income from my monthly salary and other expected incomes from parents and relatives, I started thinking of the items that involve fixed costs for instance, house rent, education loan, car insurance and the rest. I had to review my budget several times before I was satisfied with the final budget. ![]() While it was easy to register the monthly income and estimating other categories of income, computing the expenses was the most challenging thing (Freeman and Media, 2014). I thought that it would be a simple and straightforward thing to prepare my personal budget. ![]()
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