Help ME, Help YOU. (Just call me Jerry Maguire)

Today is a bit "blah" for me as one of our neighbors has unfort. passed away :( She was one of those people who always smiled and loved helping others.

So instead of being all mopey and sad this morning, I'd like to be positive and share a few helpful links with you today - something she would have been pleased with :)

One of the cool parts about running a blog is that you get asked a whooooole bunch of questions from your readers and fellow bloggers - I love it! But since i'm no expert in everything (or even some things. haha...), I tend to forward them to my favorite places out there. Hopefully you can find some goodies here!

19 FREE Personal Budgeting Spreadsheets
- Financial Ramblings

Woah, talk about hitting the jackpot! 19 sexy budgets? Total HOTNESS for sure. Everyone knows I think budgeting is one of the four best ways to get financially fit, so I give this link 4 thumbs up! (feet have thumbs, right?)

The trick about budgeting is finding what works for YOU, so having a large variety of methods own in one place def. helps finding one faster. Financial Ramblings even compares them in a simple chart to give you the broad picture of everything. Maybe you like one half of a particular budget, and bits and pieces of others? That works! Whatever style gets you going, and staying on top of it - the hardest part - is key. (You'll also notice my own personal spreadsheet was included in the mix - woohoo!)

Blog Consulting, Web Design, and More
- Mrs. Micah, Clever Dude, Blueprint for Prosperity

When it comes to Blog design/set up (esp. with Wordpress), I always recommend Mrs. Micah. Not only is she great at analyzing your site and giving recommendations, but she's FRIENDLY! And I don't know about you, but that goes a loooooooong way for me, especially when asking for help. The last thing you want is some D-head trying to push their nonsense your way. And if Mrs. Micah doesn't know exactly how to do something you're asking, that great part about her is that she'll research it and figure it out!

If direct contact isn't your style, check out one of these 2 articles. Just following a FEW of the tips listed here can make a huge difference. I recommend them to every blogger out there, even if you've been around for a bit. (I review them every cple months to make sure i'm on track):

Two favorite "blogging" articles:
- 50 tips for new personal finance bloggers - Clever Dude
- 25 steps to a wildly successful personal finance blog - Blueprint for Financial Prosperity

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My 4 Favorite Pieces of Financial Advice E-V-E-R.

Every now and then a bloke or two will ask me for my best financial advice, and while I wished I could refer them to a single post of mine, unfortunately I never could....until today!

This post encapsulates my all-time favorite "words of wisdom", jotted down in one simple place.

There's a bazillian of things I'd love to share with everyone, but there are 4 main biggies I repeat over and over again - whether on this blog, or when talking to friends, family, or strangers. They aren't new, but they sure do work! And I follow each and every one of them personally, even if I do slip at times ;)

I truly believe that these will improve anyone's finances, regardless of age, occupation, or net worth. Your wallet will thank you, your peace of mind will thank you, and you'll find yourself feeling sexier than ever! So here they are - my all-time favorite pieces of advice:

1. Pump up your 401(k)
If your company offers it, jump in as hard and as fast as you can! Contribute AT LEAST as much as your employer matches. if they match 100% of 6% invested, invest 6%. If they match 25% of 3%, invest 3%. Whatever the case may be, their portion is FREE money baby! Aka 100% guaranteed profit before it even gets invested! And if you have the means to put even more in? Then you, my friend, qualify for the Bad A$ of the year award ;)

Not only that, but Uncle Sam will hate you for it... at least for now (that's a good thing). The more you invest, the mess taxes you pay out that year. Say your annual gross income is $50k. Well, if you don't put anything in at all, you pay taxes on that $50k. BUT, say you contribute $10k towards your 401(k) in that year, well now you're only taxed on $40k! (you pay the taxes later) So yeah it may suck initially "being out" of a little money each paycheck, but over time you'll get used to it and maybe even forget since it's all automated. Either way, those amounts pile up BIG time over the years, and you'll be thankful you jumped on this money train when you did!

*if your company doesn't offer a 401(k), OR they don't match, consider picking up a Roth or Traditional IRA instead (or in addition to). There's a pretty cool breakdown of the differences and benefits here.

2. Track your spending for 3 months
This is the one thing you can do to learn EXACTLY where your hard-earned money goes to. Think of it as an E-True Hollywood Story based on Your Financial Life - you think you know, but you have noooo idea! haha...okay, well maybe it's not that drastic, but you'd be amazed at the things you'd find if you actually sat down and sorted through it all. Even if you do it just one time, and one time only, it'll give you a better over all picture of your finances.

Once you know EXACTLY how much you spend, you can then figure out how to move forward - whether it's to remain on the same route you're currently taking, or move to a newer one. I went back through 3 months of checking and credit card statements to figure out my habits, and boy was i surprised! It wasn't so much in seeing the items purchased, as I remembered them all, but it was the grand total of the expenditures that hit me. I had a guestimated a budget of $500 for my credit card each month, but in reality i was spending between $800-$1200! Woops. I then created a more realistic budget ;)

3. Create an Emergency Fund
Simply for a great peace of mind! There's something to be said in having a pile of cash in your account for whatever it is you'll need it for. I really don't know what constitutes an emergency, exactly, but for me it's more of a stash to keep myself out of trouble ;) As for how much to put in there, I personally shoot for 3 months, but it really depends on what you're comfortable with. It can be 2, 3, even 6 months, whatever you feel would make you sleep better at night. Once you reach that point, you're all set! You can then go about using your money as you wish, knowing you have that safety net.

4. Pay off all Bad Debt
Get rid of it! Whether it's credit cards, outstanding loans to friends or family, or whatever - it's not great to have. This is much easier said than done, of course, but my goodness if it's not true. It effects everything from credit scores, mortgage rates, car loans, and even worst - your overall happiness :( What would you do if you had $0.00 in debt?! How insanely awesome would you feel! It's not gonna happen overnight, and it certainly won't be easy, but it's definitely imperative to work it all out. Whatever you need to get rid of it, just start.

And that's it! Those are my Top 4 all-time favorite pieces of advice I give out. Some are easier to follow than others, but they all work magic on your financial health!

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Budgets are for Lovers (they sure are!)

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Guest Post: Pamela Grundy, writer for Personal Finance Analyst. Personal Finance Analyst is an online community of bloggers dedicated to taking the mystery out of money and helping you to live a happier, more successful life with the money you have. (sprinkled with a little humor!)

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Scented candles, fresh flowers, satin sheets, dark Belgium chocolate, imported Beaujolais, a crusty baguette, some warm Brie with almonds, and a budget session: Does it get any better than that?

OK, so maybe it does get better than that (especially the first year), but the point is,
Budgets are a lot sexier than most newlyweds realize.

In fact, I’d go so far as to say that if more young couples discovered the joy of budgets, the divorce rate would plummet by as much as 50%. It isn’t sex or politics that sinks committed relationships, its money: misunderstandings about money, lack of money, secrecy and shame over money, recklessness with money, money emergencies and disasters, and lack of agreement over what to do with money when there actually is some, and so on and so forth.

It's Preventable.
What is particularly sad about this fact is that it is so preventable. All you really need is (that’s right, here it comes…) a realistic budget that you work out together as early in your relationship as possible, and the willingness to revisit it as necessary. Making a budget doesn’t have to be tedious and depressing if you use it as an opportunity to talk about who you each are separately and what you each need and want; who you want to be together and how to create that; where you want to be in five, ten, even thirty years; and how to make all that happen.

Most budgets fail because people fail to be honest about their spending habits. Maybe you don’t want the woman you adore to know that you spend eight dollars a day on lunch and sometimes hit the drive-thru for a four dollar snack on top of that, every day, day after day. Maybe you don’t want the handsome construction worker you just married to know that if you don’t buy at least four pairs of $80 shoes every single season (in different hot colors) you will surely die, so you don’t mention that. Maybe neither of you is even dimly aware of what you actually spend in any given week.

Start out With The Good Stuff
But before you dive into that can of worms, start out with the good stuff: Explore some mutual goal setting. Do you want to buy a house in five years? Figure out what that will take. Does one of you need a car (or want a new one)? Write that down. Just get it all on paper at first, and talk about your dreams and aspirations without being negative or critical.

Now write out all the monthly expenses: rent or mortgage payments, utilities, groceries, entertainment, insurance, miscellaneous. Decide how you want to pay these. Some couples pool all their income into one joint account and assign the bill paying to one person once the budget is drawn up. If this works, great, but often it’s a recipe for disaster. If one or both people spend money from the account and those expenditures are not in the budget, a shortfall will result and fighting often follows.

Compromise is Key
A compromise that works for many couples is to have a household checking and savings account, and separate personal accounts (for those eight dollar lunches that you absolutely can keep having if they really matter that much to you… or the green shoes, whichever, it’s your money). If you have a special goal you are saving for, you can set up a special account for that and have the money taken directly from each of your paychecks.

Inequality in Wages
Another issue that comes up is inequality in wages. If one of you makes a lot more money than the other, you have to decide how to share expenses. Sometimes fifty/fifty is painful when one person’s entire check disappears into the monthly bills while the other person is left with wads of money to blow on toys more appropriate to single persons. If you suspect this issue might get ugly, better to have the romantic budget session while you are still dating. That way, either of you can bail (or back out gracefully) before you really get yourselves in a mess.

An Example
I once had a boyfriend who made about $70,000 a year at a time in my life when I was a graduate student and made only about $15,000 a year. I could not afford to go to the places he wanted to go to; I just didn’t make enough money for that. He proposed a budget solution. Whenever we went out to eat and the bill came, he would whip out a pocket calculator. By his calculations, $15,000 is 21% of $70,000 so if the bill was, say, $32.89 for dinner for the two of us, he would take 21% of $32.89 and ask me for my share, which in that case would have equalled $6.91. Sometimes he would spring for the tip all by himself.

You know what? I didn’t marry that guy. What a jerk! But, you know, without the beauty of budgeting how else would I have known to run away as fast as my little feet could carry me? Talking about money can be hard, it can be awkward, but it can be sexy as hell. Twenty minutes of money talk will tell you more about your beloved and the depth of your relationship than twenty months in the bedroom ever will, and isn’t that really what intimacy is all about? Learning about whom your beloved really is and what your life together will be?

So fear not. Set the mood. Put on a little Barry White. And whip out those calculators.

You’ll be so glad you did.

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Talking personal finance with neighbors/strangers.

I was out on my deck last night talking with our deck neighbor (we live in townhouses), and he asked me something i don't often hear a lot. He asked me "what i like to do for fun". Simple question, but i always get caught off guard with that one. I think it's because i can never actually REMEMBER what i do for fun ;)

Last night, however, i was able to get out how much i enjoy reading personal finance blogs. And it's funny doing this because 3 things always happen without fail:

1. No matter how you bring it up, it always comes out dorky! haha... i don't have a problem with that personally, i just wonder if anyone has pulled it off in a cool way? I can see older people discussing it just fine, but never have i heard it shared by anyone in their 20's...as sad as that is.
2. People are usually shocked to hear it. I don't blame them, really. Have YOU ever been told that reading up on finances were on someone's "Fun List"? And being told on blogs, or comments, doesn't count ;)
3. They want to know "secrets". This, ofcourse, after their shock fades way. It's not every day peers can talk openly about finances, so i can only imagine how far pieces of information could help them.

It also gets tricky because not only do i blog about it myself, but i'm ANONYMOUS! So, it's either let someone else in on my secret, or tell them how wonderful other blogs are to help them get started on learning! And then, of course, secretly hope they come across THIS blog and rave about it ;) OR, better yet, figure out that it's my blog so i can talk openly about it all.

As you may have noticed, i teeter on whether to tell friends and family i do this, or to keep blogging away in secret.

There are pros and cons to both, but it WOULD give them a better understanding as to why i think personal finance is important. And hopefully they'd be willing to educate themselves more, or at least poke around a bit and ask questions.)

I ended up sticking with the Anon. route, as hard as it was, and giving my neighbor few of my favorite blogs to get started (mymoneyblog.com, cleverdude.com, and krystalatwork.blogspot.com). Those are a mix between super informative, a mix of everything, and diary-type writing styles (respectively). Everyone has their own preference, so i'm hoping he'll get something from at least one of them.

I really didn't know how to answer the "secrets" part. It's always hard when you don't know that person's situation, nor finance expertise, you know? I don't wanna go into something they already know, only to have them lose interest and think they "know everything" already and thus not wanting to learn more.

So I started by speaking generally to get a feel for things. Our convo. worked itself to credit cards and credit scores, so i chimed in with a few "secrets" regarding those like:

• The average household has around $8k in credit card debt. At least that's what everyone says, but whether it's true or not, at least you know you're not alone.
• Raise your credit limit, and lower your interest rate. This will help lower your debt to ratio, AND increase your credit score - especially if you don't have much credit at all. All of this can usually be done by making a simple phone call to your c/c company.
• Make a budget - My favorite! (I wonder why?) Try tracking your expenses for 3 months to get an overall picture of everything, and then create a budget out of it. That was one of the best things i have ever done. You just need to do it once, and you're set for the rest of your life (because you'll adjust it as time goes on).

It was seriously one of the best talks i've had with a sorta-but-not-really-stranger :) Not only could i talk about a passion of mine, but i had the potential to help him. Or at least get him going in the right direction. Whether he checks out the blogs or not, at least he knows he can come to me now when financial things arise!

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Wanna know what it feels like to have ZERO credit card debt?

It feels GREAAAAAAAAAAAAAAT! (in the voice of Tony the Tiger). I know this because the Mrs. and i JUST paid off all 3 outstanding credit card balances today. That means no more interest charges, no more budget fenagling, and especially no more annoying bills to pay ;)

While it doesn't feel all that *different* per se, my brain does feel a bit more organized and clearer. I think it's just nice overall knowing that the only debt we have left right now is our mortgages and car loan. Unfortunately this will only last through August when Mrs. Budgetsaresexy starts grad school - yikes! The word on the street, though, is that it falls under "good debt"! haha...i agree it's def. better than c/c debt, but it's still not fun .

Either way, you need a solid game plan when it comes to defeating those evil credit cards.

Don't get me wrong, I'm a HUGE fan of credit cards in general - i charge everything i can to them, and then *usually* pay the balance off in full each month using my c/c budget - but what i'm NOT a fan of is recurring balances and the fees/charges assigned to it. When I find myself in this nasty territory, I set up a game plan and get the F outta there!

Here's the 4 steps we followed to sneak outta credit card hell this time:

1. We set up a time frame. It's hard to reach a goal without a marked finish line, so we decided that we wanted to be c/c debt free in 1 year. This started last November for us when we picked up our new iMac, and continued as we added a little more debt along the way. (most at 0% financing, but it's still debt)
2. We took a look at our budget. I knew there was no way in hell we were gonna pay it all off until we figured how where this money would come from. Since I already had a sexy little budget to rely on, i pulled it up and started re-working it until I couls squeeze an extra $100 a month out of it. This Benjamin, matched w/ the Mrs.', would be enough for us to reach our 1 year goal.
3. We applied the alotted money efficiently. The trick is paying off the highest interest cards first, and paying the minimum on all others. Some prefer paying off the smallest amount first to get quicker accomplishments along the way, but it didn't make sense for us. So we paid $30 or so towards minimums, and then $170 to the card with the highest interest rate...which at the time was only 5% ;)
4. We applied unaccounted for money towards the cards. This was the final killer! We used a good portion of our $6k wedding money to pay off all remaining balances, despite the urges to refurnish our house or pick up a sexy new pair of Dolce and Gabbana shades!

So after some re-budgeting, patience, and good fortune, we are now c/c debt free and ready to start saving that extra money! That is, after we take a month or so to enjoy the spoils first :)

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The new super sexy House Budget!

So I've been playing around w/ different ways to handle our "house" stuff quite a bit lately, and while i'm still not all the way there, I think I'm getting close to figuring it all out! Here are the 3 methods we've tried out so far, including our current one:

Method #1 --> Split everything up, and pay separately. We originally divided up our rent, utilities, groceries, etc. and paid from our own accounts. While it worked for a while, it eventually got old and took too much time determining who owed, and paid, what.

Method #2 --> Using our Heloc as our "house account". We deposited/paid off our HELOC account w/ every dollar earned, then wrote checks from it to pay all the bills. It saved us $100/mo, but it unfortunately backfired when the market went down, and our "deposited money" was frozen :(

Current & Simplest Method --> Opening up separate Checking and Savings accounts. We spent 15 mins. over the phone opening them up w/ USAA ( now making a grand total of 12 accounts w/ them!), and started depositing all "house" money into them. Checking covers all mortgages, bills, groceries, etc., and savings will be used for whatever we wish for at the time. It is currently set as our "wedding fund".

And, of course, I have a budget for this! I mean, you ARE at budgetsaresexy.com aren't you? haha ... Here is how our House Budget breaks down:

1st Mortgage: 30 year fixed, interest-only.
2nd Mortgage (Heloc): We still budget at this original amount (it's since dropped down to $280!!!), and we apply the difference to our store cards and the savings account.
Credit Card: House: Covers our cable bill & all groceries.
Savings Account: To be used for whatever we wish. Currently set as our "Wedding Fund".
Home Owners: Association fees that cover the lawns, pools, trash pick up, etc. in our neighborhood.
Electric Bill: keeps our lights on ;)
Water Bill*: This is a quarterly charge of around $75. I broke it down into 3 payments of $25 each/mo. so we can budget it in.
Store Credit Cards: We're slowly paying them off! Covers our new iMac, and the wedding rings, and are at 0% interest.

As you can see, splitting out "House" stuff will be MUCH easier now that everything is separated and accounted for. Each time I get a paycheck now, I check my personal budget and xfer over the allocated amounts into the right account.

Easy peasy ... at least for now ;)

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Cant' get enough sexy budgeting? check out my others:
- my personal budget
- my credit card budget

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My very own sexy budget.

I've been using a budget for a little over 5 months now, and i gotta say i am feeling pretty damn good about it! And although it doesn't look as good as it should - I have a plan, i'm stickin' to it, and i'm saving money.

The calculations don't lie: Budgets = Confidence = Sexy.

Here's exactly what i have to play with every month after taxes, ss, medicare, and 401k at 19% (holler!):
- Paycheck #1: $1807.86
- Paycheck #2: $1807.86
- Quarterly bonus': $2k-ish

My budget, however, only factors in the bi-weekly paychecks I get. The bonus' are GREAT, but it's not something i can definitely count on 100%. So, when/if these come in every 3 months, i either apply it to our open credit cards, the Emergency Fund, or to cushion my checking acct. a bit.

Here's my bi-weekly budget:
(Some of this may look familiar/redundant from my recent "Where does my money go" post, as I budget using "clumps" of money)

- Mortgage $$: 1/2 of my share of the mortgages
- House $$: 1/2 my share of the monies for "house stuff". this includes all utilities & all groceries eaten @ home. i use a separate house budget to track this which i'll post soon.
- Wedding Fund: for our wedding!
- My Credit Card: the amount i alot myself each month. Gets paid off on time and no interest accumulated. i also use a credit card budget to keep track of this separately.
- Cash Withdrawal: always gotta have cash on you.

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- Mortgage $$: the other half of my share.
- House $$: the other half of my share.
- Condo Investment: the amount to my brother for help.
- Insurance: auto: actually covers my car, our 2 laptops, and the engagement ring. billed together.
- Insurance: life: gotta have that life insurance!
- Auto loan: the biggest non-necessity (price-wise that is).
- Emergency Fund: the least amt. i put in...if i save in other areas, i drop that into here as well.
- Cash Withdrawal: trying not to take out more. it's hard :(
- Roth IRA: i used to put in at leat $100/mo until i realized i don't have the money to be doing that! i'd like to re-contribute on an automated schedule once i get this budget in check.

As you'll notice, my lifestyle costs me around $3,900/month on average, and i only bring in $3,600/month. Soooo, according to my budget i'm down around $300 from the get go :( On the plus side, however, i stick to this budget pretty hardcore and haven't gone over since starting. The last 2 months i've actually shaved off a good $200 or so each time (thanks to all my challenges!) so i'm really losing around $100 per month.

None the less, I need to get my average spending down so that i'm at least breaking even each time. This is why i will more than likely sell my car, and pick up a way cheaper one.

It's good to remember though that budgeting is a continual process. So as long as we're all indeed working on it, we're already better off!

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PS: I keep track of all my budgets using a simple excel spreadsheet i've been polishing up. Feel free to use it! Click here for the actual file, or here for the google-ized one.

More budgety posts:
- My "Credit Card" budget
- My "House" budget
- Budgets are a man's best friend.
- Where does my money go?

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Where does my money go?

That's where it all goes! To be honest, this is the first time i've actually sat down and calculated this, and i'm not liking it :( Especially that 43% and 11% up there...i'm gonna have to work on that. These #'s are based on the following categories, and the amounts spent on them each month. Here's a breakdown of everything, from high to low:

Mortgage $$ ($1676.48): My portion of our monthly mortgages. It comes out to about 2/3 of the total mortgage payments we have each month (naturally the rest comes from my fiancée), and it covers our 1st mortgage & our 2nd mortgage (our HELOC). Had i ran these #'s BEFORE purchasing our townhouse, i would have probably gone a different route, aka purchase a cheaper place, BUT what's done is done, and it's all a learning experience. Plus, the lake in our backyard doesn't hurt the eyes ;)

My Credit Card ($800.00): This is the amount budgeted for each month. It covers all my personal spending, eating out, shopping, etc, and is paid in full each month. Lately it's only been around $650, but considering how i am a good $270 OVER what i bring in each month, this only helps me to work on breaking even.

House $$ ($500.00): This covers 1/2 of all our food, utilities, house credit card, and home owner fees each month.

Auto Loan ($443.49): Covers my SUV payments each month. I DEFINITELY need to work this out in the near future, as this is a ridiculous amount. I'm still considering selling it and then picking up an older car and having no more payments (i'd just pay it off in full). Either that or at LEAST halving the amount each month. This should be easier to do now that winter is coming up so i won't *need* the suv... although she's a beauty!

Condo Investment ($120.00): The amount i pay my brother each month to help him pay his mortgage. It's a loan at 5% and should end over the next few months. He's now comfortable w/ his payments and $ situation, so he doesn't really *need* it anymore. Good job buddy!

Wedding Fund ($100): We both put in $100 a month, plus any extra savings we make from going under our "house budget" (soon to be posted). We'll turn this into a "vacation fund" or something of that sort once we're married. 3 more months to go, and then it's marriage time!

Cash Withdrawal ($100): This is an average amount, as sometimes i end up taking out around $80 or $120 depending on how much i eat out and splurge :) That, and I am adamant of carrying around at LEAST $5-$10 on me at all times.

Insurance ($119.26): This covers all of my auto, life, and some personal property insurance. not bad, right?

Emergency Fund ($20.00): It's not exactly 0% as depicted in the graph, but pretty close! I just started this last month when i opened up a money market account. Although $20 is def. added each month, i also tend to put in any extra savings, bonus', etc that may flow down the pipeline.

That's the whole kitten caboodle! I *SHOULD* allocate my 401k deductions in here, but since it's pre-tax and not factored in to my spending budgets, it didn't feel right adding it. BUT, just so i get it out there, I put in a whopping 18% each paycheck!!! Thumbs UP & thumbs DOWN.

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Credit Cards are cool.

I just can't help it, i love those little boogers! They're convenient, easy to keep track of, and extremely valuable in an emergency. They're not great for everyone, of course, but for me they work. I'm comfortable managing my money, i pay off the balances each month, AND i stick to a nifty little credit card budget.

Maybe that's what all the haters need? A budget for their credit card. I mean, all the same principles apply as the "standard" one: know how much you're putting on it, figure out which categories to use it for, follow your allotted amounts, and reward yourself for sticking to it.

As with all mental budgets people go by, this one too is without exception - you think you know what amount is good, but you don't have the facts to back it up. For me, i thought $500 was my "budget". Why though? I never actually sat down and came up with an amount that met my needs, nor did my bills ever reflect this $500 arbitrary amount. I guess people just like the wishful thinking part of it :)

The amount that actually works for me is $800/month. This may sound high to some, but i use it to pay anything and everything i can. My USAA Platinum Card, like many others out there, comes with a cash back program. So every time i swipe that bad boy, i'm saving a certain %* each month (not a huge amount, but it's still FREE money!). Here's what i charge each month:

Beer: yummy!
Food: eating out, snacks
Pet stuff: food, toys
gifts: birthday presents, charities
Random: unexpected items, blogs :), fees
Shopping: clothes, house decorations, toys 4 me
Transportation: gas, train tickets, metro (does not include auto loan & insurance)

So there you have it, my nifty credit card budget. Now if you can track this in detail every month (ie. take out all the transactions, assign them into the categories, and then see if you're + or -) more power to you. I wish i could myself, but i just don't have the patience for it anymore ... haha ... Now i just look to make sure it's around $800 or less, and if so, i pat myself on the back.

We're going on my 2nd month using the budget now and i'm totally happy, especially since i've given up on the "shopping" section since Lent. It def. makes it harder to go over budget now :)

Last month my total bill was $623.47!!!

I'd normally reward myself, but considering the previous bill was at $1,478.55 (OUCH), i'm still recooperating and trying to get back on track. I challenge you to give it a shot though, it can't hurt...although i can't promise it won't sting a little ;)

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*Cash rewards per month: If i spend up to $2,000 = .35%, If i spend up to $4,000 = .75%, If i spend up to $11,000 = 1%, If i spend up to $15,000 = 1.25%

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Budgets are a man's best friend.

It's actually true for everyone, but i couldn't resist the catchy-ness ;) As I was heading off to bed last night, it occurred to me that i have yet to write a posting on budgets! I mean, who has a blog titled "Budgets are sexy" w/out talking about budgets? Jeesh, what a loon. So, without further adieu, this is why budgets are a man's (and everyone else's) best friend.

budg·et (n): A systematic plan for the expenditure of a usually fixed resource, such as money or time, during a given period. American Heritage Dictionary

The keyword here being plan. Without one, we're just guessing that all is a-okay. 3 months ago i thought i was The Man w/ money! I had purchased a house, a newish car, paid all bills on time, invested, and still had $ for splurging. Unfortunately I was living in la la land. When i actually sat down and calculated exactly what came in and out, I was overspending at LEAST $400.00 each month! Can you believe those apples? ME, The Man, was actually losing money each month? I was a bit surprised my friends, a bit surprised.

After i wiped the tears away, i got my ish in order and promised to stick with it. I've been using a budget for a little over 3 months now, and i gotta say i am feeling pretty damn good about it! I have a plan, i'm feeling good, and i'm saving money.

The calculations don't lie: Budgets = Confidence = Sexy.

The biggest hurdle on budgeting is actually GETTING STARTED. Once you do that, even if you don't follow it 50% of the time, you're a billion times better than you were before. I'm not gonna say it's easy, but it's definitely do-able. Here's 4 simple ways to get started:

1) KNOW where you're money's going: As G.I. Joe once said, "Knowing is half the battle!" Sometimes it's scary to know exactly where it all goes, but unfortunately it's the way of life. To do this, write down everything you spent money on during the previous entire month (ex. Jan 1-Jan31). Or better yet, copy and paste it all from your checking account statement into a blank Excel spreadsheet.

2) Categorize them into 5 or so clumps for easy budgeting: The easiest way to budget is to see how much you're spending in each category, compared to previous and future months. Clump them up into groups like "Mortgage/Rent", "Food", "Utilities", "Credit Cards", and my favorite: "Random".

3) Create a "budget" around these categories: Now that you know how much you're spending in each category, figure out if you're happy with that amount. If not, set a goal to spend a little less the next month. I use a simple Excel spreadsheet (click here for the google doc) that compares both "budget" and "actual" amounts so I can track progress each month. Before this, I made "mental" budgets and I was astonished that i was shelling out $1100+ on my credit card each month! I had set a a budget in my head of $500 each month but it never got close. Once i realized how much i spent on it, and why, i came up w/ a personal budget of $800 for the "Credit Card" section.

4) Reward yourself: With anything in life, we need some positive reinforcement sometimes to let us know we're on the right track and to keep us going forward. Some people do this by going out to a nice dinner or picking up some new jeans, but either way it's important to reward yourself for sticking to the budget (just don't blow the money you just saved from your hard work!) Since I have gone UNDER my "Credit Card" category the past 2 months, I have taken the money and deposited it into my savings. It's not your normal way to pay yourself on the back, but for ME it keeps me going :)

If you've read allll that and still don't think it's worth your time, try out one of the following free online budgeting sites. You'll still have to spend a little bet setting up, but once you have it's pretty much automated: Yodlee Money Center, PearBudget.com, and Mint.com.

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