Do you think that sticking to a budget means not being able to have the things you want? You might be surprised to know that the opposite is usually true. A budget can help you keep your lifestyle AND pay off debt while saving for the future.

A budget is simply a formal month-to-month spending plan.

After tracking your spending and learning to live more thrifty, you need to make a budget. A budget is simply a spending plan. You need to list all your income sources and expenses. Then you will know how much money you will have for the things you need. It also helps you to save for things you want and be able to get them without adding to your credit card debt.
Some of us may have already learned to cut back because of necessity, perhaps from "corporate down-sizing". For others, having more financial stability and freedom is part of our cure for the harmful stress in our everyday lives.

Whatever your reason, we hope that this "411" site will bring useful resources to your fingertips (and wallet!). Check back often so we can give you the most current thrifty living, budgeting, and frugal money saving tips.

Most of us don't use a budget because it does take some time to put together. "Budgeting" is also a little scary. For now, let's take a quick look at how to create a simple spending plan (budget).

First, we need to know where money is being spent now. So start tracking your spending - everything - even the soda on the way home from work. Get an inexpensive notebook and keep up with your spending for at least a month.

To create a budget, you will need all expenses (where you spend money) and all income. Your expenses include the "notebook tracking" from above, recurring expenses (food, electricity, childcare, etc), loans (mortgage, auto, etc), unsecured debt (credit card and personal loans), and variable expenses (personal care, repairs, doctor, etc). For income, include your normal pay and any other sources of revenue (tax refund, gifts, etc).

Use your income and expenses to record your spending plan using Excel, on paper, or other software. You now know how much money you have and where it is going. Compare your actual spending against your budgeted amounts and make adjustments as necessary. Your spending plan is a "work in process".

You need to have a financial goal that will make your spending plan easier to stick to. This may be paying off debt, having an emergency fund, or paying cash for your next family vacation.

Remember that to live within your means (or actually below your means) requires that you stop spending more than you make... Keeping up with your spending and allocating money (budgeting) will keep you on track to your financial freedom goal!

I have just released a comprehensive e-book that offers lots of money saving ideas and simple budget tips. You can check it out here