No matter what the economy is doing it is always a good idea to have control over your family's spending habits.  Having a budget, and following it, not only saves you money but it creates security in your life.

A good budget should take into consideration income and bills and yet be flexible enough to allow for emergencies and the occasional splurge.  When you create your budget don't make it too tight, keep it easy to follow or you may find yourself giving up too quickly. 

In order for you to create a workable budget you need to know where your money is going right now.  The easiest way to do this is to create a diary of your daily spending habits. 

It doesn't have to be anything particularly formal, a small spiral notebook will be fine.  Date each page and list the amount spent and what it was spent on.  FOr example:

May 6

• groceries.........100.00
• Starbucks........  15.00
• gas...................  34.95

By keeping a log of your spending habits you will soon see if you are spending too much money at Burger King, or if you routinely buy clothing you don't really need.  This will help you control your spending by being aware of exactly what you are spending money on.  You may be surprised at how quickly those daily Snickers Bars add up! 

This may sound strange but you also need to keep track of your actual income.  Many people think that they are making a certain amount of money when, because of taxes, social security, and payroll deductions for various things they may be taking home much less.

Know how much money you are bringing home and reconsider payroll deductions that may not be necessary.  Check your tax deductions and make sure that you have claimed all dependents that you are entitled to. 

Compare your income to your out-go and take a realistic look at what you have to work with. 

Credit card debt is a problem for most consumers.  Many of them are paying hundreds of dollars every month in interest alone.  It is important to:

• Make a decision to get out of debt  
• Plan to get out of debt
• Work to get out of debt
• Stay out of debt

You can do this by not using your credit cards.  Just make the decision to stop using them.  Put them away.  You may need to contact your creditors and make payment arrangements.  Whatever you need to do, do it. 

Try to pay extra on one card until it is paid off and then take that payment and pay the extra on another card until it is paid off and so on.  As long as you are not adding credit card debt you wil get out of debt eventually if you continue to make payments. 

You should have three types of savings:

• Short term for items you know you want or need.
• Emergency for unexpected expenses
• Long term for security

The first thing to do is to get $1,000.00 in an emergency fund. This money is not to pay bills or to buy that cool new computer.  The emergency fund is for unexpected necessary expenses like car repairs, emergency room visits, etc.

Once you have the money in the emergency fund you will start saving for the short term items such as house insurance, the computer you need, the new car you want that you will pay cash for.

If you are having budget problems then the long term savings can probably wait until you have the rest of the budget organized and under control. 

There are two kinds of expenses; those that stay the same month to month like a house payment, and those that fluctuate like the electric bill. 

Write down the priority expenses:

• House payment
• Insurance
• Food
• Gasoline
• Utilities
• Savings
• Tithe to your church
• Car payment 

Now, write down the rest of your expenses which will include credit card bills, recreation, entertainment and clothes.

Hopefully you have enough to cover all your expenses and then some.  If you don't then you either have to take on a second job or find a way to bring in more money or you have to reduce your expenses.  Generally speaking it is easier and wiser to reduce your expenses if at all possible. 

There are many ways to reduce expenses.

• Stop shopping for unnecessary items.  Most people have enough clothing.  Call a halt to shopping until your budget is under control.
• Sell your junk in a garage sale or on eBay.  Use the money to pay off credit cards.
• Stop eating out.
• Make your own coffee at home.
• Turn down your thermostat in the winter and turn it up in the summer.   
• Make sure lights are off when they are not needed.
• Cancel cable t.v.
• Consider selling your car and getting a less expenive one.
• Use less commercially prepared food.
• Walk or ride a bike rather than buying a gym membership 

• Buy a $25 savings bond every month.  It isn't much money but it will build up over time.
• Set goals.
• Keep a positive attitude.
• Invest wisely.   
• If you feel you "have to shop" try to figure out why.  Maybe there is something deeper you are dealing with.
• Keep a creative mind so you are open to new ways of producing income. 

None of this is easy.  Just like going on a diet takes will power and determination, sticking to a budget is difficult.  But after a few months of sticking to the budget you will have less stress and more money and it won't seem hard to do anymore.