How to Budget and Not Fail

By Jesse Mecham

A lot like dieting, it seems that when you begin budgeting, you're simply doomed for failure from the get-go. Too often, the work you're doing doesn't produce the benefits you were so hopefully expecting. As a result, you quit prematurely.

Truth be told, failure is almost certain with the way people are taught to budget these days. Some financial guru will announce they've come up with handy-dandy tables to compute what you should spend on every conceivable good and service...another will say you only need to worry about what you're saving (while that's great, you're leaving a lot of money on the table when that's your only focus!).

Look at what you have currently in your checking account(s) and budget only THAT money. I like to to call it 'giving every dollar a job'. Create some categories and assign those dollars to those jobs.

The nex time your paycheck comes in? Take THAT money and give every single one of those dollars a job.

The key in budgeting is not to be some great estimator or forecaster, it's to be aware of what you want your money to do. The key is that you make sure ALL of your money is assigned to do something -- whether it's paying the rent, buying groceries, or saving for that dream vacation. It's important to realize that when you begin assigning every one of your dollars a job, they'll begin working much harder for you. You'll be much more aware of where your money is going, and your spending will fall in line with what you truly value.

So the old question of how to budget really is answered with one simple step: Once you have a dollar in hand, give it a purpose immediately, and find peace.

About the Author:

Jesse Mecham, known as the "budgeting guru", has taught thousands of people how to budget with his free 10-day course. You'll laugh, and perhaps you'll cry -- but you'll also find out exactly what you need to do to manage your money and start living a richer life.