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Budgeting create a spending strategy.(CR Money)

Consumer Reports

| August 01, 2008 | COPYRIGHT 2008 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Does the word "budget" strike the same fear in you as "root canal"? Then try this trick: Call it a "spending plan" instead.

[ILLUSTRATION OMITTED]

That's what a household budget really is--a plan to track your spending and keep it within boundaries. Done right, a budget lets you spend without guilt. Here we offer ways to make your budget-- oops, spending plan--simple and painless.

SET GOALS

Establish long- and short-term savings goals. Then determine a monthly amount to devote to each. The short-term goal, say, buying an iPod, will keep you motivated.

TRACK EXPENSES

This can be accomplished two ways:

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