Budgeting, Saving and Investing ?

Be sure to budget some money for fun things and to occasionally reward yourself for sticking to your budget.  

Popular thinking has it that, to benefit from a new fitness regime, you must do it until it hurts. I don't believe in doing anything until it hurts, and that includes exercise, dieting, and budgeting. Be sure to budget some money for fun things and to occasionally reward yourself for sticking to your budget.  

If you are sharing your life with someone, this should be done together. You'll keep each other on your toes. One area that usually products immediate results is reviewing the food items. Yes, you still need to buy groceries and eat, but do you need to eat out or pick up dinner so often? Close to 50 percent of every dollar we spend on food is for restaurants or take out. Eat at home more and pack your lunches. You'll eat healthier and save money---not a bad combination. I guarantee that making small changes in how and where you spend money will exhibit big results, but all of this will take time and energy on your part. You will need to expend the time to produce the savings.

Next, look at how much you need to save and invest to achieve your goals. Do you want to contribute 10 percent to your retirement plan, 2 percent to your emergency fund, and 3 percent to the collage fund for the kids? Your 401(k) contribution can be deducted from your paycheck pretax. You won't see it , and you won't miss it. Start by contribution 1 to 2 percent. Then every couple of months, increase the contribution until you reach your goal of 10 percent, Set up an automatic investment or savings plan for the emergency fund and college fund. Again, start with a small amount and increase it as cash becomes available.