One Step Finance

It was Benjamin Franklin that said, "Beware of little expenses; a small leak will sink a great ship." And so it is during these tough economic times, you need to be more aware of where your money goes each and every day.

There is truth to the fact that how an economy rises once again is by getting people to spend that money. It does not mean that you should be expending dollars in a 'willy nilly' fashion. What it means is to spend in a smart and structured way.

When times are great and we have lots of money, it becomes very easy to toss our money about. Excess of anything allows us to become lazy in how we treat that excess. But when things become tighter, we usually have to learn once again how to become disciplined.

So how do you become disciplined? I like the idea of keeping it simple and not throw to many steps or bullets out there. Having too many steps to follow simply complicates it. Some call it the 'kiss' principle or 'keep it simple stupid', which is similar to Occam's razor.

Either way, my one step suggestion is (hold on, this is earth shaking); "Create a budget."

Exactly, the one thing we've been told over and over again in our life but never seem to fully adhere to. Create a budget which covers your personal finances. It doesn't matter how you do it or how complex or how simple. What matters is that you do it. When you create a budget, it lets you know what your financial 'reality' is.

Most people don't create a budget because they are afraid to really know how much they spend or how little they really have. Reality can 'bite', but it is the only way you can truly understand how to get through a tough economic time and enjoy even greater the good economic times.

The U.S. government has a really great website that provides lots of free information on a wide range of topics. The site is called the Federal Citizen Information Center and is a forgotten service the government provides that has a wealth of information. To get started on your budget, I suggest reading, There’s a Lot to Learn About Money. It will give you some basic information and a starting place to put you back in charge of your finances.

To quote Benjamin Franklin once again, "All mankind is divided into three classes: those that are immovable, those that are movable, and those that move." Be the type that moves and change your life forever.
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