Create a Budget with ME in Mind

By Carisa Silvesan

Finding time for YOU is hard. Finding money for YOU is even more difficult. With rising gas prices affecting everything we buy from groceries to clothing, fuel for our car, and our electrical bills it's easy to understand why "ME" doesn't quite fit into everyone's budget these days. But, even if you're living pay check to pay check there are some simple ways to create some YOU in your penny-pinching budget.

First, pay off those credit cards. They are the first things people reach for when they see something they want, but don't really need. You may think you're paying ten dollars for that item, but after interest you may be paying upwards of 15 to 20 percent on top of that ten dollar purchase. Get yourself into the habit of only spending the cash you have on hand. This includes gas and grocery money.

Second, get the average of each of your bills and list them and their due dates. Make a budget and stick to it. Make a grocery list and stick to it. Both will save you money. Figure out which bills need to be paid from which paycheck. Be liberal when thinking about what you owe and conservative when thinking about what you expect to be incoming. This will save you heartache when a paycheck comes in that includes a few sick days and not as much pay as you were expecting. But if a paycheck comes in that is more than you were hoping for you'll have savings, bill money and even some money for YOU.

Third, the moment you get that paycheck stick 10% of that money into a savings account. This will come in handy when the sick time paycheck arrives and you find yourself a little short. Do not confuse this 10% with YOU money. It should be strictly for savings and seen somewhat as a "get out of money-trouble free" card. Savings can also be used for unforeseen car repairs or that leak in the sink that won't go away. It may feel like it will never happen to you, but those of us who have been through it will honestly tell you that kind of thinking is wishful thinking.

Finally! The YOU part of your budget should always come after your savings and bills have been paid. There is no rocket science or great mathematical problem-solving here. Your necessities come first and your wants and desires come last-even after a friend's birthday party or your neighbor needing money for milk or gas. When the YOU money arrives, think about what you want and whether or not you need to save for it. Remember material things come and go in this world, or get upgraded, but your credit is for life. Be smart and put your needs before YOU.

04/04/08  By Carisa Silvesan