Sounds like an odd thing to say, but what a difference a year can make!! Many of us have never had to watch our spending limits, let alone create a budget. But since the news emerged that a recession is sweeping our country, it seems being thrifty is the new cool!

Given the recent record-breaking revenues of discount retailers such as Walmart and various Dollar stores, it seems Americans are certainly modifying their expenditures accordingly. But what are some other effective, easy ways to create and be successful with a budget?

1. Document your current expenditures. This is your first step– it is necessary to establish your starting point before creating your plan for change. With so much of our financial expenditures made electronically or with credit, this task shouldn’t be too daunting. Track your expenditures for a month to see where your hard-earned $’s are really going.
2. Next, compare your results with general recommendations by budget experts:
   • Housing costs: Should be no more than 35% of your income.
   • Miscellaneous debt: personal or credit card loans, student loans or other debt should be no more than 15%.
   • Vehicle/transportation costs: includes auto loan, maintenance, gas or public transportation costs. Should not exceed 15%.
   • Miscellaneous/other: Health care, entertainment, apparel, travel, etc should account for approximately 25%.
   • Savings: 10% minimum
3. Establish written goals. We’ve all heard the data that is cited over and over indicating how written goals are significantly more likely to be reached– so take a moment and jot them down! Evaluate each expenditure category and generate a list of ideas to achieve the desired results. Then follow through!

Finally, once you’ve achieved some success with your budgeting plan (or even if you haven’t yet) – teach others! Start with the small changes and then move up the list. Remember, effecting change is completely in your control. Good luck!

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