Budget

J. Money writes for Budgets are Sexy - A laid back finance blog of a guy just trying to spice things up a bit. He also finds budgets....well...sexy!  If you like what you see, pop on over and say hello.  Or better yet, subscribe to his future articles or follow him on Twitter

The hard truth is that you're not going to get out of debt or save X amount of dollars if you don't have a surplus at the end of every month. It took me yearrrrrrrs to realize this, but I'm so freakin' glad I did. And it's not like I didn't already KNOW you had to do that or anything, I just didn't really pay attention.

Making a Change

Up until two years ago all I did was tread water and do whatever I wanted. Which was fine for someone who didn't really care much about their future finances, but once that someone realized he DID care about it some changes needed to be made ;) And as boring/repetitive as it sounds, the only way I got a handle on it all was to start tracking my money to find out what was going on.

You see, we always THINK we know how to manage our money and that we're "not one of those" crazy people, but a lot of us are because we don't really KNOW what we've got coming in and going out (aka cash flow). If you track it though, you can prove to yourself that you are on the right path and that you've got it on lock. But if you're like the old me and say everything's fine without being able to show it, I'm gonna have to doubt you ;)

Why Track Your Cash?

Tracking allows you to see that hard number at the end - the extra money you have every month. And once you know what it is, you can then plan to pay off debt or save X amount of money or whatever else you want so much easier. Because it will be TRUE - not just a number that you *think* you have left over.

When it comes to New Year's resolutions, one of the most common is to get in shape. For many people it implies taking better care of their body, but for just as many others, "getting in shape" means taking better care of their finances. Both goals are intensely challenging, and both are notorious for their high failure rate.

Why People Fail at Saving

People will be tempted to self-sabotage their saving goals in a number of different ways.

A very common one is ego: In many instances, people buy things that bust their budget because they want to "keep up with the Joneses."

Who among us doesn't feel envy, or make inevitable comparisons? It's irrational, but it's also fundamental to human nature. Even if there are no Joneses to keep up with, we will still make many unnecessary purchases because we think they'll make us feel better about ourselves.

Another reason why "financial diets" fail is because they require a commensurate amount of willpower, and as everyone knows, willpower is a highly elusive quality. While many people can resist ego pressure and the thrill of immediate gratification for a certain period of time, the longer it goes on the harder it becomes -- hence the high failure rate. Like willpower, stamina is not something that can be bought.

How to Make Saving Easier

Even though our egos, lack of willpower and other circumstantial factors can thwart our high-minded goal of saving money, there's always hope -- and there are always ways to make the fight easier. Saving money doesn't have to be a dour, joyless endeavor if you do it right.

Some ways to make saving money easier are:

1. Make frequent use of auto deductions from your bank account. Make sure that your bills are paid first, followed by money taken out and put into some sort of savings vehicle, whether it's your savings account or an IRA or a 401k. The point being, have the money taken away before you even have the chance to spend it. Perhaps the best part of setting all that money aside first is that you'll be able to spend the rest without any guilt.

2. Make a list of everything you buy, and apply the "need vs. want" test to each one. Your old car finally died, and now you need to buy a new one. Do you need a BMW, or do you want it? Or would your needs be met just as well by a second-hand Honda with 10,000 miles on it? In this instance, if you go with what you need rather than what you want, you'll end up saving yourself a lot of money.

3. Find a "savings buddy." Before you go on a financial diet, try to find someone to do it with. If you pool your resources with a spouse or partner, they're the best choice. If they're not enthusiastic about the idea, find a friend who wants to save as much as you. Shop together, check in regularly, compare progress. Teaming up with someone could go a long way towards helping you achieve your savings goals.

We read a lot of personal finance blogs. No joke.

While reading them, we marvel at the resolve that some bloggers had toward getting their finances where they want them to be. It takes a lot of work to keep your budget in check, and grow your savings.

So, in honor of these amazing people,...

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