Ok, well maybe not for everyone, but it got your interest, right?! And there is a cool website called Budgets are Sexy (see the link below). So, in case you haven’t guessed this week’s topic is budgeting…

A budget is simply a spending plan. If you’re spending without a plan, then chances are you’re probably overspending!

Basically, a budget gives you a chance to look at the big picture of your income and spending. If your spending exceeds what you have coming in, then you need to adjust it until your spending is less.

If you’ve never set up a budget before, then use one of the tools below to get one in place.

If you’ve tried using a spending plan before, but found it frustrating…don’t worry, you’re not alone! Most people I talk to, hate budgeting…and I get why! No matter how hard you try, many times the numbers just don’t work out. That doesn’t mean you should give up, though.

To let you in on a secret, I tried creating budgets over and over again, until I found a plan that works for me. The key for me is to know exactly what I have coming in, as well as knowing what fixed expenses I have to take care of (e.g. mortgage/rent, utilities, car payment, insurance, day care etc.)

Once that is written down, some simple math can be done to figure out how much money is left for your variable expenses – the stuff that can or does change each month (e.g. groceries, gas, iPod downloads, eating out, movies etc.) This is the fun part (ok, I’m exaggerating – it’s not really fun, but it will make you think!)

This is also usually the part where we need to start thinking about the differences between what we need and what we want. Is it time to cut back on those daily lattes? Or maybe you need to consider only downloading two songs a week, instead of 20?!

Well, there’s some food for thought…and while you’re thinking go ahead and click on one of the budget links below to actually get started!

Budgets are Sexy

CashCourse’s Budget section

360 Financial Literacy Budget Section