Easy Ways To Budget Your Money

In these tough financial times, it is sometimes tough to make ends meet. My wife and I have just payed off one of our three credit cards, and although it takes a bit, I can honestly say that it can be done. Below are a few easy ways to budget and live within your means.

Envelope Method

This is my favorite method, and results in the absolute most cash at the end of the month. There are a few things that you can't live without (House (mortgage or rent), Food, Transportation, Animals), and others just to stay sane (Phone, Cable, Internet, Entertainment). The trick to this method is to determine what you think you'll need for each individual thing, place than amount of money in an envelope, and never exceed it (or if you do, it comes out of your entertainment budget!). This works great because you learn to live within your means. You will definitely realize that eating out and daily coffee take their toll!

Spreadsheets

Whether you use Excel, OpenOffice, or Google Documents, this is a great idea to gain some perspective. When you start to tally up your income vs. expenses, the impact of each item becomes clear. The greyness of financial planning will subside and you will start to make sense of where the money is going.

Budgeting Software

Whether online or offline, this software can really help to budget, showing you what things will cost in the long run, tapping in to your bank account, and breaking expenses and incomes down into categories. While there is great software (Quicken, MS Money, etc.) out there, the though of spending $40 when you're broke may not sit right. Try a free alternate like Mint.com, and see if this format is right for you!