I have heard from so many people that they just aren't capable of living within a budget. Why is that? Most likely, it is because you never had to worry about budgeting or because you were never taught how to create and stick to a budget!

I like to recommend baby steps when assisting people with their budget plans. You don't just go from college graduate to the CEO of a Fortune 500 company in a day, and the same can be said for going from a two-income family to a one-income family.

The reality in budgeting effectively runs much deeper than just figuring out how to live with less, as money matters enter into your personal relationships as well. If you are stressed out about money, you will not be happy staying at home.

So, start small. For instance, instead of looking at how much money you do not have to spend each paycheck, look at how much you need. We all have the same expenses that are vital to living, such as mortgage or rent, food, utilities, savings, etc. Those bills should be paid first. Then you have the disposable income, or what's left from your pay to spend on needs or wants beyond the necessities.

Say you are planning to buy summer clothes for your children. Starting small with your budget means not over-spending when you go shopping. To do that, you must know what you are looking for before you go to the mall. First, decide what the kids need. I have four kids, so I would need a minimum of three outfits each for the kids. Let's say I have $100 to spend on all of their summer clothes. That would mean I can only spend about $8.00 apiece on their outfits. Is this realistic? Can I buy all that I plan to buy on that amount? If you cannot, then you need to find alternative ways to outfit your kids, such as shopping at thrift stores, visiting garage sales or learning to sew. I believe, that with some savvy shopping and planning, I would not have any trouble getting the kids some nice clothes within my means.