Black Is The New Red

Money.

Whether you have a lot or a little,

budget gurus at all levels

will first remind us that budgeting is our 

first line of defense and most effective weapon

for fighting debt and planning our future.

Let's be honest, budgeting is not the most fun part of having 

a paycheck, but whether you're

22 or 56, the best way to get in or stay in the black AND 

grow our money, is to have and follow...

a plan. 

This one comes compliments

of J.J. Burns & Company via Men's Health.

Step 1:  Track Spending

Writing down every purchase can grow tiresome. Simplify the process by paying all your bills online through your checking account and making the rest of your purchases with a debit or credit card. Do this for 3 months.

Step 2: Analyze Your Expenses

At the end of 3 months, take a look at where your money went. You can do it the old-fashioned way, with a notepad and your debit- and credit-card statements. Or you can sync your cards with Quicken or Mint.com. "Not all budgets are the same," says J.J. Burns, eponymous president of the wealth-management firm. "They vary according to lifestyle." So find your economic status below, and compare your spending.

Step 3: Build Your Budget

Now that you know how much you're spending—and should be spending—you can build your budget accordingly. The easiest approach is to create an Excel spreadsheet with columns for budgeted and actual expenses in each category you want to track. A lot of people go crazy with this, trying to track every last item (lunch, beer, concerts). That's tedious. Our advice: Use the five categories below, and within these categories list all the expenses you pay online from your checking account (so your rent or mortgage payment falls under housing, cable television bill under pleasure/personal, and so on).