Photo from: ffffound

When you build your own budget, it can be as simple or as complicated as you want.

The more categories you add, the more control you’ll take, and the more information you’ll have to make better decisions in the future. Having more categories also makes it easier to find leaks in your paychecks.

It doesn’t take long to find your own comfort zone once you start.

So, how simple can you make a budget?

The ultimate purpose of starting and following a budget is to help you live two main principles: Live Within Your Means, and put your Needs Before Wants.

The simplest budget plans can be as simple as three categories:

Needs, Savings, and Wants.

Savings (even a little) will help you live within your means – and funding your Needs first makes sure you won’t get into trouble. And Wants are important too, just not as important.

Everything else is just fine tuning your unique personal budget to your unique life.Similar Posts:

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Photo by: Gilles Gonthier

If I learned anything from elementary school, it’s that groundhogs have the cosmic ability to predict how long winter will last depending on their shadow.

This supernatural event only happens on the 2nd of February every year. If the groundhog sees his shadow he goes back down his hole to hide from six more weeks of winter. The universe will have spoken.

We have no ability to change whether winter will last another six weeks or not – that is up to the cosmic groundhog – but you do have the ability to choose to follow a budget for the next six weeks. Try signing up for One Month of Budgeting for some extra help:

If you’re reading this in a reader, you can click through here to see the form.

(Ok, the One Month of Budgeting emails only last for five weeks, but you still get six emails.)

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PS – I was going to include a bunch of mildly obscure references to the movie Groundhog Day, to drive my wife nuts, but I deleted them.

Oh what the heck:

Watch that first step… it’s a doo-hoo-sie! Am I right, or am I right? Right? Right?Similar Posts:

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Photo by: emdot

WithinMeans dot com is getting older every week.

Today I wanted to re-visit three of my favorite posts so far:

1. My favorite post: A Strong Budgeting Foundation

When I was done with this post, I almost felt like everything had come together on its own.

The picture, the idea, the structure – it all seemed to say exactly what I was excited about that week.

2. Most proud of: A New Perspective on Budgeting

Is it possible to be proud of a post about how I need to be more humble? Seems like that would negate the whole concept.

3. Highest hits: Burn!

Not sure if I should be proud of this or not.

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Thanks again for all of your readership, subscriber-ship, comments, and budgeting efforts!Similar Posts:

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Photo by: doug88888

One month of budgeting!

I hope that a lot of people will be setting goals for 2010 that revolve around starting a budget, staying on a budget, and using their budget more.

My challenge for you is to start and stay on a budget for the month of January.

If you can do that, you’ll know you can keep it up for the rest of the year.

I like to think that the free One Month of Budgeting emails I give away make a difference to those who sign up for them. I always get a little excited to see when someone’s signed up because it means someone was willing to take at least one step towards getting their 95% in order.

If you’re willing to try out the challenge just fill out the form below (or on the sidebar to the right) and your inbox will get one email a week reminding you to update your budget, as well as listing a few tips for getting the most out of the experience. After your sixth email you can continue budgeting on your own, or sign up again if you enjoy getting the reminders.

*Edit – January has ended, but the One Month of Budgeting emails are always available – and this form still works if you want to sign up here.

If you’re reading this in a reader, you can click through here to see the form.Similar Posts:

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Photo by: olpc

I can still remember being a young teenager and my mom and I going to the bank to open my first checking account.

This was before debit cards were so common, so all I got was a book of checks, causing me to feel very grown up.

Then we went straight to a bookstore where my mom bought me a small booklet that went into the back of the check book. It was a simple booklet of “spreadsheet style” tables. She showed me how to fill out categories, how to use them keep track of how much I had and how much I wanted to spend on any given thing.

We discussed the benefits of watching your money and the potential consequences of mindless spending.

It was simple and easy to grasp (and I’m terrible at math).

I could see right away the advantages I would gain from such a simple system.

I doubt that if she hadn’t taught me how to budget my 95% at that age, that I’d be in as much control of my finances as I am today. I was lucky enough to grow up being very conscious of where my paychecks were going, and managing where they went. (Video games, mostly… at the time. And some savings.)

If you have children, consider teaching them how to budget while they’re young. It’s not a difficult concept for younger folks to grasp and the benefits to them can be huge in the long run.

How do you teach your kids about money?Similar Posts:

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Photo by: tintin1212

It’s Almost Done!

I’m excited to let you know that this week I’m hoping to finish a major WithinMeans project I’ve had in the works for a while now.

It will really change the way you’ll be able to use WithinMeans to get started on a budget and make it much clearer and simpler.

Without giving too much away, I can say that it’s goal is to easily walk anyone through starting a budget within a few minutes. Those who choose to try out this new feature will, I believe, get more out of life (and out of the blog posts).

I always get a thrill when I see someone has signed up for “One Month of Budgeting” (to the right in the sidebar) because it shows someone is willing to get started – that I’m making a small difference in some way. I hope this latest project starts making an even bigger difference.

If you’re not currently following the site somehow, this would be a great time to start.

Some of the easiest ways are:

• Subscribing to the Blog – If you check for updates in things like Google Reader or Blogger.
• Becoming a fan on Facebook – If you spend more time there. I really only post blog updates – no quiz results, I promise.
• Following me on Twitter -  If you really want to get to know me.

Similar Posts:

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“Yeah?”

“You bet! I can tell from your trendy glasses that you’re a music kinda guy and this baby has iPod interface. All your music at your fingertips!”

“Nice!”

“Plus it has tons of cup-holders, plays DVDs and video games for the kids, has a GPS system, and tons of other fun things.”

“So, where are the wheels?”

“Oh… Did you need wheels?”

Photo by funkblast

Needs and Wants

As a music geek, you might persuade me that access to my iPod might be more important than having wheels while driving, but probably not. There are some basic fundamentals that a car needs to function as a car, and a lot of things it doesn’t need to work. Not even GPS.

When you’re budgeting your paychecks, make sure your 95% at least has wheels. Budget your needs before your wants.

When you fill up your “need” funds first in your budget, you give yourself peace of mind. Instead of lying awake at night running numbers in your head, you’ll know you have money for the mortgage, and the insurance, and the other bills, safely set aside. It’s a lot less stress in your life at a very little price.

That said, I hope your budget lets you have the GPS too.

It’s not about good vs bad, it’s about first vs second.Similar Posts:

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Some of my favorite people to share how to budget with are newlyweds. There’s this wonderful new beginning for them, and they’re usually anxious to start organizing their lives together.

For newlyweds (or any couple really), it’s always helpful to be on the “same page” about things. Your budget can be a very convenient and useful “same page” when it comes to your 95%.

Photo by: orinrobertjohn

As you build a budget together as newlyweds, you have an opportunity to get on the same page about a lot of things right away. Doing this will help you completely avoid many common money issues and misunderstandings down the road.

Here are 4 ideas for getting on the same page with your budget:

Use GoogleDocs

Nothing keeps you both on the same page easier than having your budget accessible online. Make sure both of you have access to view and interact with your budget, and that you’re both referring to it often. My wife and I have used GoogleDocs for 2 years now, and we love being able to look at our budget at the same time and even chat while we view it.

If you’re not familiar with GoogleDocs, you can get pretty savvy here.

Be Honest

Or, more accurately, be open and clear. Let your spouse know what your needs and wants are. If something is important to you (maybe it’s shoes, or collecting old books, or traveling), communicate that and agree on how to realistically work it into the budget – together.

This way, both of your needs are being met, expectations are clear, and you can completely avoid any “I can’t believe how much you’re spending on ____ !” situations.

Set Goals Together

Remember that your budget should help you get somewhere. Discuss what kinds of goals you want to be working for and how much of your paychecks will be needed to achieve those goals. Debt elimination and savings are easy to attach numbers to, but don’t forget “fun” goals, or lifestyle goals you both want to achieve.

Reevaluate Regularly

Your budget should help you start a conversation. As you review your budget with your spouse, you can look for areas you want to cut back, or areas you might want to add funds to. Instead of speculations and exaggerations, you’ll have actual numbers to go with your conversations.

The sooner you get on the “same page” the better, but of course it’s never too late.Similar Posts:

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Mindi and Preston are good friends of ours who started a budget together shortly after getting married.

photo by: Darby Elizabeth Photography

They’ve done a great job staying with it and really taking advantage of manipulating the Skeleton Spreadsheet to make their budget their own.

I asked them a few quick questions recently about their family budget:

What surprised you most about budgeting?

How much we were able to cut back by simply setting up a budget and monitoring it. We didn’t have to work hard to make a difference.

How do you stay on the same page together with the budget?

We both have access to the budget anytime, anywhere, through Google Docs. We talk about it at least once a week,  sometimes more.

What has been the hardest part?

The hardest part was about 2 month into the budget when the novelty of it was gone and we wanted to go out to eat somewhere, and knew we shouldn’t.

What’s the best part of following a budget so far?

We feel more in control of our lives. We can actually see where our money is going and see money start going into savings.

What advice would you give a first time budget-er?

Have a little money for fun and make sure it is available. You may never use it, but just knowing that it is there helps to ease up some tension. Also, follow your budget closely for the first couple of months, and when you think you are okay not following it as close as you were… that is when you really need to follow it.

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Thanks again to Mindi and Preston. You can follow @prestoniscrazy on Twitter, and even catch him performing live if you’re in the Phoenix area.Similar Posts:

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Space shuttles have to overcome a couple of things to get into orbit. They have their own inertia as well as the earth’s gravity working against them. It takes a lot of thrust to overcome both obstacles and get up there.

I always find it interesting that there’s a certain point where the shuttle doesn’t need those two big white rockets on the side anymore – it drops them off and they burn up in re-entry.

Photo by: jurvetson

The first few weeks of budgeting can take a lot of thrust as well – you have your own lifestyle inertia that doesn’t want to change things, and the gravity of your current habits.

But it gets easier.

There’s a certain point, different for each of us, where the habit solidifies, thrust can decrease, and you don’t need to worry so much about escaping your own gravity.

You’ll keep your budget updated without a reminder, you’ll follow it more naturally, and it will work seamlessly in your life.

Plus, when you’re up there you’ll have a top-down perspective of your money.

Need some extra lift?

Sign up for the free weekly email reminders:

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