Budgeting Tips - Learn how to budget your money by changing the way you think

This may seem obvious but budgeting your finances is critical if you are always ending up short of cash around payday.

Budgeting is simple but where most people fall short is keeping the discipline and energy to make it work - simple, but many times, not easy....

You know the biggest culprit of lack of funds for most people?

Laziness!

Poor Budgeting and Laziness

Instead of making your own lunch which may take all of 3-5 minutes, we spend $8.00 a day eating out. This is a good example of a long term cost avoidance. It's more of a mode of thinking rather than following a strict "to the penny" budget.

And you know what? Trying to follow a strict budget is almost like trying to follow a fad or crash diet - they don't really work. They may work temporarily but personal financial management is more successful "long term" if you realize it's a "disciplined way of thinking" rather than trying to live your life "to the penny".

For example, instead of buying a case of bottled fruit water and taking one for the road, we gladly accept being overcharged day-in and day-out for "water". Lazy budgeting fools we are...with that kind of thinking we deserve to be broke!

The Cost Of Not Budgeting

Failing to control your budget could increase your reliance on payday loans over the long haul.

A payday loan online can be the least-cost-alternative in a few isolated cases, but make sure you understand how these short term loans work before you dive in.

Don't Make Budgeting Harder Than It Really Needs To Be

The fact is budgeting need not be a huge burden or very complicated at all.

At first, focus on the cutting out the obvious frivolous expenses you can easily control.

For example, start with day to day expenses that don't require much thought: eliminate drive through fast food and coffee; eliminate impulse items at the check out counter, drive less - can you ride a bike to the store? Name brand vs generic... the list goes on...

Grow Up - If You Can't Afford It Don't Buy It

Today, most people DON'T really own anything. How about you? House note? Is your furniture financed? How about your car? Of course we need these things to have a normal life, but financing everything can easily get out of control.

Nothing wrong with financing major necessities like a house or car.

The problem turns nasty when you start buying TV's, furniture, clothes, home theatres and other NON-necessities simply to make yourself FEEL good. "Everyone else has a 52" Hi Def LCD screen TV so why can't I!" you whine. And it's so easy to get. Even with bad credit you can still purchase most major appliances - you'll just pay out the nose with 15-25% interest.

Over-leveraging yourself financially by buying "Stuff" you really can't afford is irresponsible and a sign of "insecurity" believe it or not. It's as if you can only "feel good" about yourself when you are surrounded by all the neat stuff you can't really afford, plus you don't really own it. If that's you...you need to change your way of thinking fast - or else you'll be destined for financial doom.

The solution? Get another job to pay for "stuff" you want. Blunt but true. When you work hard you can actually "appreciate" the things you buy - and that should make you feel good about yourself.

Here are 3 simple budgeting TIPS

Again... these may seem obvious but if your cash poor, you should probbly go over the following points below

Budget Tip 1. Know Where Yor Money Is Spent - and adjust

Keep track of your daily spending - especially the routine cash outlays like coffee, snacks, lunch. Things you may purchase routinely out of convienence. When you're cash strapped convienence type purchases are OUT. Buying coffee for $2.25 everyday at a coffeshop adds up to $45 amonth.

Why not buy some really good ground coffee, make it at home, and buy a thermos and travel mug? You'll save hundreds of dollars over the course of a year.

Remember...don't obssess about everything you need to purchase - concentrate on routine purchases and decide if there is a cheaper and acceptable alternative. Basic and simple until it becomes a natural instinct.

Budget Tip 2. Don't Spend More Than your Paycheck

Actually you should be spending much less than you make. You must determine what your disposable cash limit is per month. Disposable cash is money to be spent after all debts are paid - mortgage, car payment, student loans, child support, energy and phone bills etc...

If your disposable cash is extremely thin at month end, then you are carrying too much debt and should consider adjusting your lifestyle.

Budget Tip 3. Start Saving

Try to save at least 10% of your income. Do what ever you need to put that amount away as difficult as it sounds.

This is where the discipline really kicks in. Once you see your bank balance begin to grow, the act of "saving rather than spending every cent you have" becomes a a real motivation.

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