Here are some easy steps to prioritizing your family budget items.

First - Look at our budget and make sure it is as complete as possible

Everything you spend money on or are saving for should be on that budget.

Second - Look at each item and assign it a letter

Give it an A if you feel that it is absolutely essential. (For example, the rent is hard to do without.) Give it a B if it is needed but can be altered in the amount spent on it. (For example, food can be very costly or quite affordable.) Give a C to items that you could do without if you had no other choice. For example, entertainment or movies might fit in this category. Be sure to label all of them according to YOUR needs. For some, rent may not be as important as family entertainment because you might be living with the in-laws.

Third - Now give a number to all of the A's and then to all of the B's and then to all of the C's. Start with the number one for each of the categories. So there would be an A1, A2, A3, B1, B2, B3, B4, C1, C2, C3, C4, C5, C6, etc. These numbers represent the items importance within the letter category. So the most important item in the whole budget will be A1 and the least important items will be marked with the C and the highest number in the C category.

Fourth - Now you have them in priority order and if you need to trim your budget, you simply start with the largest C number item and remove it from your budget. Continue up the list until you have trimmed enough to make your budget work with your income.

Look at your listing of importance at least once a quarter to see if there is some trimming to be done. Of course if you have had an increase in income, you might be able to add some of those trimmings back into the budget. This exercise will help you to keep in line with your budget and secure a stronger financial future for your family.

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DEBT truly is a four letter word. You should think of it standing for "Don't Ever Borrow over Time."

Here are some steps to help stay out of debt.

First

- Learn to live within your means and well within you means. Put together a detailed budget and live by it.

Second

- Don't buy on credit unless it is an absolute necessity. Absolute necessity would be something like needing to buy a new freezer because your current one broke well-before it should have, and everything in it will be lost unless you get a new one immediately.

Third

- Look at debt as giving someone else control over a part of your life.

Fourth

- If there is something you feel like you really want or need, start a personal savings account and feed it regularly until you have enough to buy it.

Fifth

- Make sure that your budget contains categories for emergencies and miscellaneous expenses.

Sixth

- If you have credit cards that you can't help but use, even when there is not a necessity, cut them up and have a card cutting party.

Of course it would be hard to buy a house without taking on some debt. Even a car can sometimes be a necessity that requires some debt. You can find great deals on cars that are dependable and in good working order. You don't need something fresh off the lot.

If you find that you have some debt, do everything you can do eliminate it. You will find a freedom in being debt free. You will feel like you are in control of everything.

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I am frequently asked, "What should I include in my budget?"� There are as many answers to this as there are people who have/want a budget. You can be as detailed or as vague as you wish. You should let your particular needs determine just how much detail you want.

For some it is necessary to go almost to the penny on their budget so they can find out exactly where every penny went. For others, they just need a general idea as to what they are spending and where. Normally, the less money you have, the more detail you need so that you are not surprised by something that can throw your entire budget into a financial mess.

Those who have substantial amounts of money may not need to know how much they spent on movies during the month because it really doesn't put a dent in their budget.

There are certain things that should be in every budget:

• House Payment or Rent

• Utilities

• Food

• Savings

• Donations

• Miscellaneous

If you don't need any more detail than that, good for you. If you always run out of month before you run out of money - great!

Most of us will have to add several other categories in order to keep track of where our money is going. Here are several suggestions for other categories:

Clothing, Car Payment, Gas, Furniture, Tuition, Medical, Dental, Appliances, Tools, Tires, Carpet, Magazines, Vacation, Emergency, Eating Out, Insurance, Dry Cleaning, Taxes, House Paint, New Roof, Emergency Fund, Glasses, New TV, etc.

As you can see, you can get quite detailed. One of the best ways to determine the items for your budget is to look at your expenditures for the last 12 months. If you can't find the info for that, then do six months. Try at least to do three months.

Look at bank statements, receipts, notes, etc. to determine what you spent your money on. Make a list of every transaction and what it was for. If you went to a movie, list it and create a category for entertainment. If you bought groceries, list it and put it in the food category. If you are saving for a new car, put that amount in the car category, etc. Once you have looked at all of the expenses for the last year (or six months or three months), you will start to have an idea of what you are really spending. Most people are stunned to see exactly what they really spent and what they spent it on.

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Cash is a marvelous thing, and it is even better to have a lot of it, but if you are going to use it for transactions, you should remember the following four things:

1. If you are going to carry cash, it is a good idea to carry a wallet in your front pocket. It is much harder for someone to steal your money.

2. Only bring enough cash for emergencies and specifically planned expenses.

3. Collect receipts or keep a notebook to write down specifically where you spent your cash. This will help you track accurate amounts for your budget at the end of the month.

4. If you insist on using cash, try to carry smaller denominations as they tend to attract less attention.

Cash transactions tend to get lost when a receipt is not generated. For example, your son comes to you and says that his friends are going to a movie and asks if he can go with them. He tells you that it will cost $20. You pull out your wallet and give him the cash. You have no receipt for the transaction. When the end of the month comes and you need to put your expenditures against your budget, you will probably not remember having given your child the money. I know it sounds picky, but we need to account for what we spend or we will lose control of our budgets.

There are those who feel they will spend less if they carry around cash because it feels harder to spend cash than to run a card through a reader. That can be very true, but you still need to keep track of it.

If you feel like Zig Ziglar and like the feel of cash in your hand and pockets, just keep track of how you use it so you can continue to have plenty when you need it.

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Here are five of them in no particular order. If you feel like you might be coming down with it, do something to get back on the right track ASAP to insure your financial health.

1. You have the feeling that because the store is still accepting your credit card it must mean that you have good enough credit to be using it responsibly.

2. You have the intense feeling of heat in your pocket if there is any money in it, and you feel the need to spend it immediately so that it will not burn a hole.

3. You never look at the final price of large credit purchases. "If I can afford the monthly payments, it must be a good deal."� I doesn't matter that you end up paying three times more than the market price for something over time.

4. When you look at your neighbor's house you have an overwhelming urge to make sure that you have things that are at least as nice as the things they have. (Preferably nicer!)

5. You think that because you grew up in a large house with three cars and a nice annual vacation to an exotic place, you should be able to do that as well in your family no matter the stage of your life.

Fighting Spendicitis

If you feel any of these symptoms, there is still hope. Here are a few ideas to keep you from contracting this horrible disease:

1. First, make a budget that in all inclusive. It should cover just about everything you could purchase.

2. Second, stick with that budget no matter how much you might want that new car (like the one the neighbors have).

3. Third, make certain savings is part of your budget. If you don't set money aside for yourself, who will?

4. Fourth, try to avoid credit purchases. They can kill any budget.

5. Fifth, get the whole family involved and on board. Let everyone know if things are a bit tight so that they can alter their wants to fit their resources.

If you use the above treatments for SPENDICITIS, your family will be inoculated and have a sound financial future.

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Let's talk about an easy way to keep our family bills under control. You could use the "large bowl method". This consists of putting all of your bills in a large bowl. When you receive some money, you go to the bowl and start randomly drawing out bills until the money is gone. If a debtor calls you to collect on a bill you simply explain this procedure to them and tell them that if they don't leave you alone, you will take their bill out of the bowl! Obviously, this is not going to fly.

There must be a better way. Here are some basic steps to keep the bills organized and pay them on time.

1. Try to handle your bills only twice

Once, when they come and a second time when you pay them.

2. Get 4 envelopes or folders and label them for the weeks of the month

The first one represents the first seven days of the month. The second one represents the 8th through the 14th. The third represents the 15th through the 21st and the last one represents the 22nd through the end of the month.

3. When you get a bill, put it in the folder that represents the week prior to the bills due date. For example, if the bill is due on the 15th, put it in folder number 2 (which represents the 8th through the 14th).

4. Find a consistent day of the week that you can look through your bill folder

Make sure it is the same day each week, if at all possible.

5. Take the bills out of the folder for the current week and either pay them on line or pay them through the mail. You should be a few days ahead with your payment because you put them in the previous week's folder. This way you avoid late fees or notices.

Of course, to pay the bills, you must have the money to do it. Make sure that every bill is in your family budget (unless you have so much money that it really doesn't matter). Pay the bills on time and you will never have to worry about those annoying collection calls and late fees.

If this simple process seems too overwhelming, you might want to go back to the large bowl; but I would recommend filling that bowl with popcorn to eat while you take care of your bills in an orderly fashion.

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"Means" means the available resources that we have, especially money. So how do we live within our money? It is really quite simple. We spend less than we make! That is the secret, and always has been. No matter how much money you make, spend less.

There are three easy questions to ask yourself that will help you to know if you are indeed living within your means.

First

- Do you owe anyone money? This does not include long-term debt like the total price of your home or car (however, it is entirely possible to purchase a home or car that is well outside of your means, so be careful).

Second

- Are you current on all of your monthly bills? If so, can you continue to be current on them for the next six months?

Third

- Does your debt increase or decrease each month? If you have debt, is it being paid off without incurring further debt? Can you pay all of your bills and still have some money left at the end of the month? If so, you are living within your means.

That being said, if you do have debt from credit cards or home equity loans, you must ask yourself why you have that debt. If it's a result of a one-time purchase, and your plan is to pay it off as soon as possible, then that shouldn't be a problem. If on the other hand, you find that you have refinanced your home several times to free up money for other things, then you might be in trouble.

It usually is not a good idea to use debt to pay debt. It's like having a hole in your yard that you need to fill, and digging another hole in the yard to get the dirt to fill it. The problem is that you find out that to fill each hole you need a little more dirt and before long, you have a huge hole and no more dirt to put in it.

The only ways to get out of debt are to either increase your income or decrease your expenses. There are several ways to do either one. If you are overspending just a little bit, it will probably be easier to simply analyze some of your cost and cut them down. For example, you could cook food at home rather than go out as often, or you could switch to public transportation to save money on gasoline.

If you find that you are spending quite a bit more than you are taking in, you will need to make some major changes. A different, higher paying job or a second job might be the solution to your problem. You could combine efforts and cut expenses while taking on new part-time employment. These are hard decisions and you will need to weigh them carefully. Regardless of how you got into the situation, if you are spending more than what you are making, you must do something to correct it immediately or you could end up with a hole that you'll never be able to fill.

I'm sorry if it sounds mean, but live within your means.

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When we lose a loved one, we can become confused. We may feel the need to act in ways that may be contrary to their desires. We might feel like we need to purchase the most expensive casket because anything less would demonstrate a lack of love on our part. We wouldn't want the people who come to the funeral service to see a cheap casket. We're afraid that someone might judge us, or even judge our deceased loved one. Some funeral directors may even attempt to take advantage of those in mourning, by convincing them that they need unnecessary services.

On the other hand, sometimes an expensive funeral is warranted. A close friend of mine recently lost her grandmother. The family gathered together to make the final arrangements. The services ended up costing the family just under $20,000. This was a huge impact on the family resources. Despite the large amount of money that went into the funeral, the family felt good about the decisions that they had made. In their situation, they felt that an expensive funeral was the proper way to show their love for Grandma.

So how are you supposed to make sure that your family does the right thing for your funeral? Here are four ways that you can help your family by preparing for the future.

1. If you want to be buried in a cemetery, try to include the expense of a grave plot in your budget and have it purchased well before you need it. Make sure to let your family members know about the purchase, and where the plot is located. Otherwise, they could easily end up purchasing another plot. Not only would this end up costing your loved ones quite a bit, but you also might not end up buried where you want to be.

2. Take the time to write down a brief outline of your funeral

It sounds morbid but it will help your surviving family members know how you want the service to proceed.

3. Tell your family whether you want to be buried or cremated

If you're to be buried, then pick out what type of casket you want. If you want a headstone, take the time to pick one out, or at least decide upon the style. Making these decisions for your family will make it much easier on them while they are mourning.

4. Plan your budget to include funeral expenses

It is also possible to purchase a prepaid funeral so that your family doesn't have to. Doing so will take a huge burden off of them in one of the most difficult times they will have.

Always make sure to talk to your family members about what you want and how it will be paid for. You don't need to be terminally ill to bring it up. It may not be the most enjoyable conversation to initiate, but it's possibly one of the most important. Sadly, we never can tell how much time we have left, and we owe it to the people we leave behind to prepare.

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There are several reasons to make sure that you are saving some of your income.

1. It gives you some security and calms your mind.

2. It teaches you thrift and to be careful with your assets.

3. It gives you something to fall back on if something unplanned goes wrong.

4. It looks good for your credit rating to have some cash on hand.

5. It is essential for your planned future purchases like college, home, etc.

6. It makes you the go to guy if anyone in the family needs some money. (OK maybe there are really just five good reasons.)

Can anyone say broken freezer? When we moved into our second home, we put all of our frozen goods into the freezer. We plugged it in and went about moving everything else. Two months later I went to get something out of the freezer and everything in it was ruined. The plug that we plugged it into was not a working plug. It not only ruined the food but the freezer never did recover. We had to buy a new one with our savings. I am very glad it was there. It would be easy for a situation like this to cause major problems with the family budget.

There are lots of ways to save. I have a money jar by my night stand that I put my change in every night. It is not a replacement for a real savings program but when it is full, I take it to the bank and normally receive between $75 and $125. Of course it takes months to fill but it is fun to take it to the bank. A far better way to save is to put 10 percent of your paycheck immediately into your savings account. Don't think about it: just do it - you will be surprised how quickly it grows.

Don't get into your savings account on a whim for some Girl Scout cookies or the like. Make sure you have a legitimate reason before spending your hard earned savings dollars.

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YOU HAVE BEEN ROBBED

Now what? Of course you had some cash in there to go to the movie but how much more did you have? Hopefully you weren't carrying a large sum of money. Then it hits you, you had your credit card(s) in there. How many did you have? What are the card numbers? How will you stop the thief from using your cards? The thief could run up the cards and wreak havoc on your family's finances.

Your family is disappointed not to go to the movie but they understand your problem and you rush home. You call the bank but you have thrown away your statements and you don't know your card(s) number(s) or the code(s) on the back. What will you do?

Luckily, you remember reading this article so you have a solution. You have made a copy of the entire contents of your wallet both front and back so you have a record of every card you have and the numbers on the front and the codes on the back. You have a copy of your membership cards, your library card, etc. You can now call the companies with confidence and shut down all of your cards before there is too much damage to your personal information.

Here are some of the things that you should copy in your wallet for just such an event.

1. Of course your drivers license. You might even be able to use the copy while you are getting yours replaced.

2. Your debit and credit cards. This will allow you to shut them down ASAP. Most of them have an 800 number on the back that you can call. It is small so make sure you get a good copy.

3. Your membership cards. This would include travel cards, AAA cards shopping cards and the like. Although these are not normally used against you directly, the their can use these to get more of your personal information and take advantage of you later.

4. Anything else that could be used to get more personal information about you such as a hunting license or a library card.

Just a quick note - don't copy the cash - You might not look good in orange or stripes.

If you fall prey to a thief or if you just loose your wallet, be sure to have the security of a back up copy. It will make life much easier and save your family from a potential disaster.

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