1. Decide on your priorities. Most peoples budgetsrevolve
around three costs:food, housing, andtransportation. After
youbudget for those expenses,which probably account forbetween half
to two-thirds ofyour take-home pay, andfactor in any debt
payments,decide how to prioritizesavings, householdexpenses,
professionalexpenses, andentertainment
2. Harness the power of a Web tool On Mint.com,you can
uploadyour account informationand get immediate insightinto where
your money isgoing. You can then use thatinformation to start
savingmore money, just in time forback-to-school season.Other
online options includeWesabe.com, Pennyminder,and You Need a
Budget.
3. Time yourself Once you decide you need to buy aspecific
itema new computer, forexample, or a backpackgiveyourself a
specific time limit to makethe purchase, such as a half-hour.You
dont want to lose precioustime sifting through options whenyour
instinctive reaction will probablyend up being the best
decision,says AnnaMaria Turano, co-authorof Stopwatch Marketing:
TakeCharge of the Time When YourCustomer Decides to Buy.
4. Consider the year, not just the month Budgeting for the year
is betterlargely because we feel lessconfident in our
monthlyestimates, so add more of abuffer for unexpectedexpenses,
according toresearch by University ofSouthern Californias
GuldenUlkumen, Cornells ManojThomas, and New YorkUniversitys Vicki
Morwitz
5. Set money aside for leisure Research shows that peopleget
the most pleasure out ofspending on leisure activities,such as
vacations, movietheater tickets, and hobbies,partly because these
thingsusually involve spending timewith other people. Dont forgetto
reserve some cash for suchhappiness-inducing pleasures.
6. Set money aside for leisure Research shows that peopleget
the most pleasure out ofspending on leisure activities,such as
vacations, movietheater tickets, and hobbies,partly because these
thingsusually involve spending timewith other people. Dont forgetto
reserve some cash for suchhappiness-inducing pleasures.