Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the spine. Why in the world would anyone need or want to budget their money?

First off, budgeting your money does NOT mean you are poor, or are in need of financial assistance. You'd be surprised to know how many considered to be "middle class", regularly budget their money in order to make the most of what they have.

Secondly, designing and implementing a budget does NOT take a Harvard doctorate degree requiring hours upon hours of tedious work.

What is a budget?

Simply put, a budget helps you to track your income and keep your spending habits in check over a certain period of time, allowing you to reach specific goals.

Why Start A Budget

There are many reasons why a family may want to implement a budget. These "reasons" can be labeled BUDGET GOALS. The reason(s) you are budgeting your money.

It is imperative that you actually determine what your GOALS are before actually designing a budget plan.This is what you will be striving for.

Answer the question - 'Why do I want to start budgeting my money?' To save for a new house or car? Saving for your childrens' college education? What about an early retirement?

These are all very important goals that many of us will have to face at some point in our lives. And these are some of the goals that can be tackled through the implementation of a budget.

** Summary - Set Your Goal(s) **

Cash Flow Analysis

It is now time to determine the amount of "cash" that comes into your pocket every month, and the amount that leaves your pocket every month.

This is one of the most important steps in planning your budget, for it allows you to get a whole perspective of your current financial situation. At the same time, analyzing your "cash-flow" allows you to actually see where your incomes are coming from and how it is being spent.

Remember, this does not have to be done professionally nor does it need to be time consuming. In addition to that, try not to track every single penny that you spend. You'll drive yourself crazy. A budget should not frustrate you to death.

Start with your income(s). It's best to take it a month at a time so you get a clear, concise view of what you make on a monthly basis. Don't forget to include any benefit or interest payments you receive.

After you have an idea of the TOTAL amount you receive monthly, it's time to add up the expenses you pay every month. Generally, you can group most expenditures into two categories - fixed and variable.

Fixed bills - mortgage, car, insurance loans, etc...

Variable bills - utilities, phone, car maintenance, entertainment, food, etc...

It is really important that you tally up EVERYTHING that is paid out monthly. That includes all taxes, social security, 401(k) (retirement funds), and any other deductions that you might have taken directly out of your paycheck.

It works best if you write down ALL the expenses/bills that you pay monthly.

If you are having difficulty remembering what is paid every month, take a look back through your financial records, checkbook or bank statements for more accurate numbers.

Remember, you do not want to spend hours and hours, sweating over this. Budgeting should not be like another 9-5 job. The quicker and easier this analysis process is, the more you will be willing to go through with it.

** Summary - Write Down ALL Incomes and Expenditures **

Review Your List

Now that you have your list of incomes and expenditures, it is time to review what you have written. Look and see what bills/expenses can possibly be lowered. Do you notice any excessive spending areas? Any bills you know for sure that can be lowered?

This is where you might have to make some sacrifices. Is your dream of a brand new BMW worth giving up your restaurant outings three times a week? These are the choices you are faced with when you must decide how you are going to reach your goal(s).

Start out small. There's no need to become a first-rate miser overnight. That's hard to do! Take things a step at a time. Implement one money saving strategy a week, or month. Remember though, you decide at how quickly you accomplish your goals.

** Summary - Review And Decide Where To "Cut-Back" **

Track Your Spending

In the real world, you are faced with thousands of advertisements and gimmicks begging you to 'buy their product'.

Buy what you must, just keep in mind your budget.

In order for accurate records, track as much of your spending as possible. Simply save all the receipts you get from your purchases.This is important because you need to tally everything to see how much money you saved at the end of the month.

** Summary - Keep Track Of The Money You Spend **

Compare Results & Modify

Now it's time to find out if all your hard work has paid off. Were you able to lower some bills? Finding out how much you saved is the best part of budgeting. It's exciting! This is what makes the whole budgeting process worthwhile.

Stick with your budget! Modify your spending habits to try and lower bills bit, by bit. You'll soon forget about the whole budget idea, and just see it as a game, where you try and save as much money as possible month by month.

You can find more money saving articles to help lower your bills at:http://www.SavingSecrets.com/tips.html

** Summary - Compare and Make Necessary Changes For Increased Results **

Conclusion

The hardest part of the whole budget process is starting one. Once you set your mind to implement a budget, and take the time to formulate a written agenda, the rest falls into place.

Budgeting requires some small sacrifices. Changes in lifestyle. Changes in spending habits. Be creative and have fun saving money off your bills. You are doing this for YOU, to accomplish your GOALS, so stick with your budget plan and your will be rewarded!

** Summary - Start YOUR Budget and Accomplish Your Goals! **

Gregory Thomas has been writing effective money-saving tips for SavingSecrets.com for over six years. Hop on over and you'll find FREE money-saving articles, a monthly newsletter, and even a FREE Ebook download just for stopping by! http://www.SavingSecrets.com

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Debt Relief Information:

Related Articles

Bankruptcy: Which Chapter Do I File?
There is more than one kind of bankruptcy. You should understand your options before deciding which chapter of bankruptcy you are going to file for, or if you are going to file for bankruptcy at all.
Debt Elimination Is The Key to Financial Freedom
If you want financial freedom, the first thing that you will need to do is to get rid of your debts. After all, as long as you owe money, you can't consider yourself to be financially free.
Bankruptcy Reform: Designed to Protect Big Business
Who will benefit from the new bankruptcy reform laws? The financial services industry and other big business groups, that's who.These groups contributed millions of dollars to elect Bush and other Republican candidates in 2000 and 2004, with the goal of overhauling the bankruptcy system.
Is My Credit Card Debt A Problem?
For most Americans, credit card debt is a dangerous and growing problem. The average American family has more than $8000.
Life on a Debt Management Program
Signing up for a debt management program is easy; it's a matter of finding a company you feel comfortable with that is difficult. There should be no pressure added from the company you speak with, joining a DMP is your decision and you should feel like you are in a partnership with the company, meaning you both have control over your financial situation.
What Does A Bankruptcy Trustee Do?
Once you file bankruptcy a court appointed bankruptcy trustee will oversee your case. The new law also requires that the bankruptcy petitioner to take a debtor education course and receive credit counseling from a U.
Craving For Financial Freedom
Have you ever felt trapped in a Rat Race and wished to retire quickly but rich?Have you ever felt that you are spending way too much time working with your boss at your office instead of with those you love? Your spouse, children, friends?Have you ever felt frustrated because you are so deep in debt that you think you won't be able to retire because as soon as you do, the money will stop coming and thus you won't be able to pay off your mortgages and credit card?Have you ever felt that you have no control over your life anymore in terms of time? Think about it: can you take a vacation just anytime whenever you want/ need it and as long as you want/ need it?Have you ever wished that you can work whenever you want and wherever you want?You are not the only one!Too many people are trapped in a Rat Race because they have to. There are too many bills to pay, and too many dreams to fulfill.
Learn The Five Key Debt Reduction Steps You Must Take Immediately!
Step 1. The purpose of this first step is to bring you back to reality.
New Bankruptcy Law Makes it Harder to Stop Foreclosure
On October 17, 2005 President Bush's sweeping bankruptcy reform law goes into effect forever changing the rules of debt collection in this natiion. Consumer advocates and the public appear to be completely unaware of the total and complete victory of the creditors under the new legislation.
How to Choose a Debt Settlement Company
As consumer debt continues to spiral out of control, debt relief is fast becoming a major concern for many American's. In 1999, American's made $1.
Reduce Your Debt With These 5 Tips
It's never pleasant to realize that you're in financial hot water, but pretending the situation doesn't exist is NEVER the way to deal with the problem. If you're having trouble meeting monthly payments, find yourself borrowing or using credit cards to meet daily expenses, or have one or more of your credit accounts turned over to a collection agency, it's time for you to get proactive and bring your debts back under control.
Solutions to Single Mothers in Debt
As a single mother, lets admit it, times get tough. You are fortunate enough to have your children that mean the world to you, but it doesn't come cheap.
Debt Management - Is It the Right Choice For You?
Debt Management plans offer credit counseling clients a different and new approach to tackle their finances. Finding out if a debt management plan is right for you can take some time.
Hide That Car! Fighting the Repo Man
Vehicle repossession may appear justified in circumstances where a person is generally being irresponsible and otherwise able to meet this financial obligation. However, what about that hardworking guy or gal who paid their automobile note dutifully for three years, and missed one payment? Why should their car be repossessed?Basically, the lender owns your car until it is paid in full.
How To Get Out Of Debt
If you have found yourself in a position where you are in serious debt and cannot think of a way out of the situation, then take a few minutes to read these few tips. Some may seem obvious but do put them into practise as they will help.
Bankruptcy 101
Bankruptcy still remains a mystery in the eyes of many consumers. This article will review the facts of bankruptcy as per written law.
4 Simple Ways to Solve Your Debt Burden
Getting BehindGetting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road.
Bankruptcy - Bankruptcy Myths
Bankruptcy has long been a big question mark in the eyes of the consumer. After all they don't teach us about bankruptcy in school.
Senate Passes New Bankruptcy Law
The United States Senate passed a law on March 10, 2005 that changes the bankruptcy laws in America. It is expected that the House of Representatives will look to pass the same bill in April, which will send it to President Bush for his signature.
Fast Track Out of Debt
You go to the mail box and scan - a couple fliers (nah), your magazine subscription (yes!) and bills (groan). Every month the bills show up and as you sigh and take out your check book you wonder if you will ever be free.