How To Master Budgeting

In any, and every self help discussion or book you will find that the first step is always to recognize your downfalls and failures. Not just so you can feel like crap about yourself (we're all failures - don't worry) but also to help fix what it is that sets you back. Unfortunately, in this day and age - it's not actually our fault we're following behind in our bill payments and building a wall of debt. Let's face it, things are expensive and jobs are few and far between (good jobs in particular).

That's why the first step in my recovery process of my own personal debt was to manage my money better. Not that spent a lot, but I never paid attention to where or what I spent it on. I just trusted that the banks had my covered, and as long as I made my payments huge I should be working my way up. HOWEVER, ladies and gentlement - if you're drinking the same amount of water you pour, you'll never have a full cup! It's time for us all to start keeping our receipts and writing down what it is we spend. Or at least making a mental note of it. No more getting a hair cut because it's only $30 today. (Especially if you're the kind of person to get a dye job and perm as well. That's $120 charged in just one hour of your week. Betchya didn't realize that's twice your minimal payment on the credit card this month!)

For one month, calculate your daily spendings versus your average income. Seriously, Calculate. Or just check out www.mint.com and sign yourself up to something that will watch those things for you. After you watch yourself live a little, you can start to build your budget... And follow it. This isn't an atkins diet guys, this is making or breaking your financial future! Who wants to work forever with no retirement savings? - I just didn't take you for that kind of person.

Number two step is to Budget; but number two Realization is to take into account that you WILL in fact spend random amounts of money places. I don't care of Mr. Will Power is your best friend. You Will spend it. Night out on the town with friends, or a car that needs a tune up - give yourself a cushion. I personally allow myself at least $100 to "muck" up. Depending on what my monthly income will be, I try to make my largest payments toward my credit cards. (Because if I don't need the money that I put on them, at least I put the money away before I used it anyway... And if I DO need the money I put on them - well, I have an open door to use those sons-a-beaches on any purchase requires.)

The great thing about mint.com is that it allows you to budget for your lifestyle. It does have a default mode, but we're all different. Some of us are bachelors while the rest of us have bottomless pits of children and animals waiting at home. Not even Walmart helps the worst of us. So you set up what you allow for food shopping for the month, and going out money, bill payments and even birthday spending if need be. The world is your oyster, and once your set up it will notify you via email (And Smart Phone to all you iphone love birds!). It will do all the watching and worrying for you.

Seriously.