Budget? What is a Budget?

Does your budget consist of paying the bills as they come in the mail and then seeing what is leftover for food and other necessities? Does it consist of paying your bills when you are notified that they are late?

Do you have a computer program to help you that you check maybe once or twice a year? Do you pay money for an accountant to handle all your finances for you?

There are easier ways to keep a budget. For those that have had no experience with budgeting at all, this article will be helpful. Sit down with a pen and paper and work some numbers out. First, write at the top of your paper what your paychecks are going to be and the dates of the month they will be coming in.

Under each check amount, write the bills you are going to pay for that pay period. Make sure you check the due dates on your bills to ensure you are not paying them late. Don't forget to write in your groceries and gas and even entertainment if you like. Now would be a good time to set aside some savings as well.

Below are some other tips to help you get started on your monthly budget.

1. Write down all your incoming cash flow and all your bills.

2. Keep a check register. Today we all swipe our debit cards and think nothing of it. It isn't as easy to have your register handy when you use plastic instead of a checkbook. But if you keep track of your purchases from home once a day or a couple times a week, you will then know what you are spending your money on and you can make some changes if you need to.

3. Categorize. Have a category for food, fuel, bills, entertainment, etc. This will help you realize how much of each check is going towards what you need. If you have some leftover you can move it to another category that needs some more or you can save the extra cash.

4. Think twice when making purchases. When you think you just have to have something, take a deep breath and really ask yourself if you need this, want to spend money on it, or if there is something more important you can put your money towards. Once you have effectively thought and answered these questions, you will be able to make a better purchase decision.

5. Don't borrow money. Don't apply for credit cards because of the rewards or you want to blow money you don't have. Spend cash for everything and you'll not end up in so much debt that you can't see over it! Perhaps having one credit card with a small balance would be smart for emergencies, but then don't carry it in your wallet. Keep it at home.

6. Start saving something now. Anything will do and when you have a chunk, you can then put it into something that will earn a higher return. Most people think they have to have thousands of dollars to invest or to save but that is simply not the case. You can pay for a financial professional to help you with your investment portfolio. That in and of itself is a good investment!

7. Find ways to cut back. If you only use half your cell phone minutes most months, reduce your plan. If you don't watch TV, get rid of your cable. Dial up internet service is good if you rarely get on your computer and is cheaper than faster connections. Go to local farmers markets and buy your produce.

8. Shop at thrift stores and yard sales to find things that would be nice to have but you can live without it being brand spanking new.

9. Children grow out of clothes so quickly, shop at the thrift stores till they are grown.

10. Do your children, if you have any, really need multiple game systems, music players and cell phones? Reassess your frivolous purchases and monthly bills to shave off those that are not necessary.

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