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I’ve written about the importance of creating a budget before. But I just got an email with another idea:

Regarding savings and expenses - there’s an easier way to manage. Most people have trouble keeping track of expenses. The easier way? Just decide how much you want to save each month and automatically transfer that into savings then spend the rest. No need for complex expense management.

Phil

It’s still a good idea to know exactly how your spending is breaking down, but this is a great first step to saving money. I really like his idea of saving first, then spending what’s left.

(1 votes, average: 1 out of 5)

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Posted April 2, 2005 under Saving

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David Saunders II December 9th, 2007

The best ideas are always simple ones and this is no exception. I use a credit card (that I pay off every month) to categorize expenses since A.) My CC company lets me download directly to Quickbooks and B.) Everywhere including fast food restaurants now accept plastic.

Phil's idea is perfect - reduces financial stress and allows for ease of saving/investing right up front. As long as you're disciplined against over-spending what's left each month, you'll be good. Save/Invest first (and pay taxes if not a W2 employee), and whatever's left in your checking account is yours to use for the whole pay period.

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Another way to budget

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