Everyday Cheapskate

If the word "budget" is like nails on a chalkboard to you, you've got a friend in me. I know the feeling.

For many years, I had nothing to do with a budget because I couldn't stand the idea of anyone or anything telling me how to spend my money. Where did that get me? It got me into one big financial mess because every month, when I ran out of money, I turned to MasterCard and Visa for bailouts. Bad idea.

What I learned from going through that experience and finding my way back to solvency is that a budget is the ticket to financial happiness. It's not the straitjacket I feared it would be. Still, I don't like the word. If it's OK with you, let's drop the B-word and call it a spending plan. There. So much better.

Like a road map for a cross-country road trip or the blueprints to build your dream house, a spending plan shows where you are and how to get where you want to be.

A spending plan means that you determine where your paycheck will go before you spend a nickel of it. Think of it as "pre-spending" your paycheck on paper. Then you track how closely you followed your plan. Once you have this information, you'll do better pre-spending next pay period, and eventually, your planned spending will come gloriously close to actuality.

This task can be done manually with paper and a pen, but there are a few really cool online tools and calculators that make it a lot easier — and perhaps even fun, too.

—Mint.com. This service sets up your budget online based on your average monthly spending. It then automatically tracks your monetary life.

Once each week, you receive an e-mail that lists your current balance(s), suggestions for changes you might want to make and tells you when bills are due. Cost: free.

—Wesabe. Part financial software, part social networking community, Wesabe helps users track spending and set financial goals. You can download the Wesabe software to your Mac or PC without giving access to your accounts. You import the data from your accounts, categorize your transactions with tags, and set spending targets and goals. Cost: free. Go to http://www.wesabe.com.

—ClearCheckbook.com. Another option is ClearCheckbook, an extremely easy-to-use tool that helps you balance your checkbook and manage your money. Think of ClearCheckbook as an online checkbook register with the added bonuses that you can use it to view reports, set budgets, create reminders and more. Cost: free for the standard version or $4 per month for the premium version.

—Mvelopes Personal. The "Cadillac" of tracking software, this online service links with your bank and uses envelope icons to apportion your paychecks and keep track of spending. Mvelopes gives you a visual cue of how much you've spent and how much money remains in each of your spending envelopes. If you go over in any category, the line item turns red. Cost: You get a 14-day free trial, and then it's $7.90 to $13.30 per month, paid annually or quarterly. Go to http://www.mvelopes.com.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her latest, "Can I Pay My Credit Card Bill With a Credit Card?" You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

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