Get one, and stick to it!

We are about to enter one of the most difficult economic cycles that our country has ever seen.  There are a myriad of reasons for this; and most of them boil down to a lack of personal responsibility.

It’s time to take responsibility for one of the most basic things that you have, your cash flow.  Get control of it today.

If you’ve never lived in a budget, I’ll offer a few tips:

1. Use Cash – It’s harder, but it will keep you honest
2. Don’t pull the strings too tight right away – keep a “fun” fund if you have the money to pull it off
3. Pay yourself first – savings, off the top and automatic

Here are a few quick pointers on how to setup a budget:

• Start with your “gross” pre-tax pay.
• Make a line item for your taxes and any “automatic” pay-check deductions
• Next your “fixed” expenses – rent/mortgage, car payment, insurance, etc…
• Variable expenses – credit card payments, electricity, gasoline, food
• Finally, discretionary – internet, telephone, cable tv etc…

You’ll probably be surprised at how much you spend after the first month.  My guess, you blow your budget in month one.  Good, now regroup and get it tightened up.  If you don’t have enough money to pay yourself via savings, then cut off the cable tv and get to living within your means!