10 Tips To Create A Budget

1. MAKE GOALS Goals can be as short-termas buying a new pair of shoes next week or as long as going on vacation next spring. Start small and be realistic about what you want to accomplish. make your goals personal. Decide what you need and want, not what other think is best for you.
2. INVOLVE YOUR ENTIRE HOUSEHOLD If you are single great, but if there are others in your household (i.e. spouse, and/or children, an elder) sit down together as a family and talk about your finances. Create a budget together and explain to everyone that they may be asked to make sacrifices. This can insure that everyone has the same understanding of the financial direction you wish to take.
3. BUDGET IN FUN A budget that leaves no money for fun is designed to fail. It is wise to pay yourself. A budget is designed to help you, not put you in a bind (note: be realistic ans sensible when including entertainment or "fun" expense; the objective is to also save).
4. SAVE, SAVE, SAVE If you are not having luck saving in the traditional way, change you mindset. Most people view saving as putting away money for a rainy day. A different view is to put money away for a specific event, and if a rainy day comes before you save enough for that event then you will have a reserve of available funds to meet whatever challenge you face.
5. TAKE INVENTORY If you don't know where your money goes, how do you expect to manage it? Over the course of two weeks, keep a record of how you spend your money. From a cup of coffee to groceries, write it down. Then go back and figure out ways to cut your expenses (maybe buying regular coffee instead of gourmet will save you $10 a week. It sounds small, but over a year it can really add up).
6. SAVING IS HABIT FORMING A wise man once said that a bad habit is easy to make but hard to live with; but a good habit is hard to make, and easy to live with.
7. EXPECT CHANGES Look down the road, and get into the habit of thinking ahead. If you kow that your situation is going to change (i.e. taxes, a new baby, etc) plan for it.
8. GET RID OF HIGH-INTEREST DEBT Focus on identifying high interest-rate debt and work on paying that debt off. Check with the credit union at your job; many have lower percentage rate credit cards and loans. The best way to keep from spending too much on credit cards is to be open-minded about what you're spending.
9. FIND A SYSTEM THAT WORKS FOR YOU It could be the envelope system, a bank, or a credit union. If it works for you and your family, use it. Experts warn, however that it will be harder for you to save if you keep your "money" where it is always available to you.
10. REMEMBER: YOU HAVE TO WALK BEFORE YOU CAN RUN Creating and sticking to a budget that works won't be easy, but in the end it will help you make the most of your hard-earned money.

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