What's Your 2010 Budget Plan?

Did you include budgets as part of your new year's resolution? Do you plan on spending money this year? Resolve now how you want to spend your money this year and take charge of your finances.

I've spent the last five years of my life climbing out of the Grand Canyon of debt. By the end of January 2010, my credit card debt will be gone. I did this with a simple plan...don't charge anything else and pay off the credit cards.

Amazing...I survived. But now I'm faced with a new money problem. How will I spend that $600 a month? I have glitter and gold tempting me, no doubt. But there's still debt to paid down. I have two cars, a timeshare, student loans, a mortgage. So, my spouse and I created a plan.

It looks something like this (these are all examples, by the way) 
We'll have $5000 freed up this year due to the elimination of credit card debt. 

Plan for $5000

• Payoff timeshare $1000 
• Create emergency savings $2500
• Christmas savings $1500

It's important to create a plan so you aren't stuck saying once again, "Where did the money go." Do you find yourself saying that between pay periods?

Planning on how to spend your money isn't glamourous, spontaneous or fun. But it does give you freedom, control and a sense of accomplishment.

Everyone has a different budget and depending on where you are with yours, depends on how little or how much you can do. Here are some simple tips to help you act quickly:

• If you find that you need help with getting debt under control, contact a local credit counseling agency for advice. You don't need to enroll to ask for advice. They can help you with a plan too.
• Save for those big purchases and resist the 12 months same as cash deals. Most people never pay what they finance off in 12 months. Instead, save the money each month and then pay in cash. You'll be surprised when you're forking over your hard saved cash how discriminating you'll be with the deal. It's easy to add lots of add-ons that you don't need when you finance...leaving you more in debt.
• Don't be afraid to become cheap. Let me say that again, don't be afraid to become cheap. There aren't awards given out in heaven for those who had the best, most expensive items on earth. So, get the most bang for your buck and make the money spread around.
• If you're an impulse shopper, figure out what your triggers are and try to avoid them. Don't go shopping when you're bored (exercise, read, cook instead), eliminate the stores you're most addicted to if you only need a few things. Lately I've been going to Kroger versus Meijer because often times going into Meijer for cat litter has cost me $56 and I forgot the cat litter! Instead I left with gloves, a new spatula, eyeliner, a bottle of wine...etc. Sound familiar?

Most importantly, take the baby steps that you can build upon. Getting your out-of-control budget under control takes a lot of work. Don't beat yourself up over it. Take a deep breath and know that there is no reason why you can't be more financially free. But be willing to work at it!