One of the biggest keys to successful financial structure is to put in place a budget and stick to it.  A budget is the best way to get a grip on your spending and making sure that your money is being used in the way that you want it to be.  Life on a budget is a necessity and so if you haven’t been living on a budget, there is no time like the present to get started and the following information may be helpful in getting started.

Creating a budget generally requires taking the following three steps.

1.  You must track your spending to figure out your current spending patterns.  You can’t change what you don’t know about.

2.  You must evaluate your current spending and set goals to take into account not only your day to day living expenses, but also your long term financial goals.

3.  Continue to track your spending to make sure that it is within the guidelines that you have laid out for yourself.

PITFALLS TO WATCH OUT FOR

Cash leaks.  If you are spending money and you don’t know how much or where it went, then you have a leak.  In general, if you are well budgeted, then you should be able to predict how much cash you need to take for the week, and that should be it.  There should not be constant runs made to the ATM machine or bank, this shows that you are not budgeting effectively.

Spending More Than You Have.  This is a common problem in most households, but you really need to come up with a reasonable budget and then stick to it.  Overspending causes debt, and once debt takes over, it can be difficult if not impossible to overcome, so don’t fall into the trap of spending more than you make.

Don’t Confuse Luxuries With Necessities.  Understanding the difference can be the key to making a realistic budget.  Cable TV, cell phones, internet service and fast food, are not necessity items, even though many people try putting them in that category.  It is important to not try and fool yourself into thinking that you can’t live without these items.

Don’t Count On Windfalls.  When you are figuring out how much money you can live on, don’t include in your budget things like bonuses, tax refunds, or investment gains.  The extra money from such items may be nice, but shouldn’t be figured into your income.

Watch Out For Spending Creep.  This is what happens as you begin to make more money, you begin to spend more money.  You are much better off sticking to the same monthly budget and putting the extra income into your savings.

If you attempt to solve this problem using the lecture method, then you may just drive your spouse to spend more, thus resulting in more problems.

A more effective strategy to combat this problem is to keep track of household expenses.  Accountability for household expenses may be just enough to show your spouse the areas that need work, without really saying anything.

If this doesn’t work? Then the time has come to get separate bank accounts.  And if your spouse’s spending is causing extreme stress on your household finances, then you may have to consider stronger measures.

Finally, you might consider lightening up a little. Marriage is one of life’s great blessings. If you think the occasional iToy is expensive, wait until you see how much a divorce costs.

1. When buying a foreclosed property, you don’t get a lot of the information about the information about the property that you might receive during a traditional home purchase, and this can put you at a disadvantage, if you only have enough capital to take over the home, but don’t have enough capital to invest in repairing the property. Many foreclosed properties require major work and although you may be one of the lucky ones who gets a property that is in excellent condition this should not be counted on.

2.  If you are considering buying a foreclosed home, make sure that you can afford to pay the taxes on the property.  Just because you get a good deal on the property itself, does not mean that you can afford to hang on to it.

3.  Make sure that you are not spending money that you will need back right away.  It is important to realize that with this uncertain market, that although you can definitely make a profit on a foreclosure it may be a little while before you can turn the best profit.  This is why you need to think of buying a foreclosure as a long term investment, unlike real estate investments of the past, when you could quickly turn over homes for profit.

The important thing to remember is that foreclosures are an excellent opportunity to make a profit, but make sure that you can afford to buy one before you do.

It may be a long haul for the American public, but we can all do our part.  Volunteer time, money or whatever resources you have to help others if you are not one of the one’s in need.  You could need help in the future, so keep in mind that what you put out there comes back to you ten fold.  We need to help each other, just like we did following 9/11.  We need to unite and show the world what American’s are made of, and it isn’t money.

In the past, I have always overextended for Christmas, coming out of the day in a hole and then spending most of January trying to get out of it.  I really thought that was normal, but this year, I stuck to a budget, and I can honestly say that I feel better going into Christmas than ever before.  I know that I still have a dime left and that I will be in good financial shape in the New Year.

People tend to over spend at Christmas, so that they can give to others, however, I can honestly say that I would not want a gift from anyone who was putting themselves in a hole to come up with a present for me.  I would much prefer a card or some cookies instead.  That would make me happier, and I am sure that no one on your list wants you to go into hock, just to present a cool present to them at the holidays.

Do yourself a favor, limit the gift giving to simple things, and what you will find is that you will enjoy the holidays much more than you ever have before.  I know I will.

The answer to that is both complex and simple.  When Bush set out to stimulate the economy, he did so by sending checks to individuals and families.  Great in theory, however most American’s who were already struggling used those checks to pay bills or stashed it away for a rainy day.  Therefore, we did not all run out and shop for new items and that in turn did not do for the economy what Bush had hoped.

In Obama’s plan, which does include checks to the American public, it however does not rely on them to be the stimulus.  It is offering a much more comprehensive and multi faceted approach to stimulating the economy which includes sizable tax deductions for businesses for each new employee they hire on.  This will help create jobs, which in the long term seems like it will have a bigger impact on people’s spending.  After all, you can’t be out spending if you don’t have a job at which you can earn some money.

If you look over the plan you will in fact see that Obama’s plan will help stimulate the economy which will not only help the individuals but also the businesses and the unemployment rate.  Overall, this plan is cheap compared to how much Bush has spent on bail outs in the last three months.  At least the Obama plan stands a chance.

Worrying is creating and wasting energy that could be better used to focus on what you can do to help yourself.  Worrying creates depression and a feeling of matters being totally out of your control.  This leads to feeling overwhelmed and helpless, and that is a hard place to function from.  How can you avoid feeling like this?

Start focusing on the positive.  Things that can help reduce your monthly expenses will help you to feel empowered.  Take the reigns and get your spending and your finances under control.  Don’t think negatively about money, think positively focus on the fact that there is plenty of money in the world and plenty of it for you.  Tell yourself that each day you will work to conserve not only money but all of the resources that you have available to you.  Always treat your money with respect.  Keep it well organized and neat and treat it well.  Experts say that treating your money with respect is a good way to obtain wealth.  If you think about it there aren’t too many millionaires with crumpled up money stuffed in their pockets or money lying all around their homes, so show money the respect that it deserves.

Following these simple rules can not only help you feel empowered to deal with your personal budget, but can also keep you from getting down in the dumps when the going gets tough.  Just a few tips to keep your sanity during this time of growth.

1. Watch your unnecessary spending.   So many of us spend without really thinking about it.  We are functioning on automatic pilot when we are out there in the world.  Sometimes just cutting out that extra cup of coffee and donut on your way to work in the morning can be enough to ease a little bit of the pressure.  Did you realize that if you buy one cup of coffee a day for a week that is the same amount of money that it would cost you to buy a coffee maker? Even with the price of coffee these days, you still save an enormous amount just by brewing your own.  Not only that but invest in a plastic travel mug and clean it out.  You will not only save on $$$ but also be helping out the environment.

2. You can do your own car repairs.  Did you know that many of the instructions for performing an oil change or changing out filters can be found right online? You can even find a diagram of your car’s engine, so that you will easily be able to locate filters in the car more easily. This will take a little extra time, but it is a wise investment that will not only save you money, but will also take up some time in which you might otherwise be spending money.

3. Cut out your home phone bill.  Did you realize that in addition to just functioning on cell phones, that you can also get cheap home phone service through your high speed internet connection? Not only that but you can reduce your bill from about $70.00 per month to about $20.00.  These online phone services don’t charge you for long distance fees, and you can sign up right online and choose your own phone number.  It is worth your time to look into this option.

4. If at all possible ride a bike to work or carpool.  This will save you on fuel expenses and let you use the fuel you are buying for recreational purposes.  Again another money saving tip that will also help the environment while also reducing the wear and tear on your car, which provides truly a double savings.

5. Save as much money as you can and put it aside.  Hanging on to your money is definitely the way to go.  Now more than ever, saving is important and needs to be looked at.  When the economy goes through a rough spot companies will be cutting back, so unless you are in the food or fuel industry, your job could become an extra expenditure that your company doesn’t need.  Being prepared by having a little nest egg tucked away just in case is definitely the way to go.

There are many things that we can do to help ourselves feel a little less out of control.  We may not be able to control the economy, but we can control how we spend our money.  We must use this ability to create a more powerful perspective on the situation.