Think of budgeting as a plan to get what you want. Everyone works hard for their money, but the trick is to plan so the money works for you. Take some time to establish goals you would like to accomplish.

The first step is a family meeting so everyone gets a chance to talk about how and why the money is spent and saved. Be sure to include children in the discussion. Discuss how to work together to achieve a common goal. As a single person, planning for yourself will involve some thought about your financial goals.

Start by determining the amount of money you have to work with each month. Make sure you include all income and that you use the net pay amount from your paycheck. If overtime is part of your income, you may want to categorize it as savings or emergency fund money rather than planning on it as a consistent income.

Next, track your monthly expenses. What are your fixed expenses, such as rent or mortgage, that do not change from month to month? What are your flexible expenses, such as groceries, that may be adjusted? What are your periodic expenses, such as car insurance? Write all these expenses down in dollar amounts. You may have to approximate some amounts at first, but be realistic. If your family does consume $100 worth of groceries each week, it's unlikely they will want to go on a diet and eat less. On the other hand, you may be able to cut this expense by using coupons and careful shopping. Then subtract all your expenses from your monthly income. If you do not have enough income to cover your expenses, reevaluate your expenses to see what can be adjusted. If nothing can be adjusted, you may have to consider other options, such as finding a part-time job.

Be sure to include savings as a priority, as well as money toward paying off debts. Remember to allot some disposable income; it may not be much, but everyone needs a little money for which they do not have to account. Here are some tips to help your budget work:

• Stay with a month-to-month plan.
• Write the plan in pencil - keep making adjustments.
• Allocate any extra income toward a specific expense.
• Don't carry your debit card or credit cards with you.
• Pay attention to due dates to avoid paying late fees.

The above information should be understood to be a general discussion of the subject matter and DOES NOT constitute a legal opinion about the situation. For further information, please consult a qualified attorney.

Financial information provided by the Financial Center.

(c) Consumer Credit Counseling Service (r) of Central Indiana, Inc. 2001. Reprint with permission only.