Responsible budgeting and money management are skills everyone needs to learn as is the discipline required to put these skills into action. Many people find it difficult to stick to a budget; oftentimes, this is because the budget they created is not realistic. Regardless of the economic climate, it is important to know how to manage your finances and keep track of your spending. In order to do this, you need a budget that you can live with. Here are a few simple steps to get you started.

First things first: before you can put together a reasonable, livable budget, you have to know what the greater scope of your financial situation actually looks like. This doesn't just mean knowing how much money you make every month you need to take into account your income, your fixed expenses (like rent, gas, groceries, day care, and insurance) you pre-existing debt, as well as other random spending needs (summer vacation, birthdays, etc.).

Once you have all of this information in front of you, organize it into three categories: Income, Needs, and Wants. Income will obviously be your salary and any other wages you may receive. Needs are your fixed expenses, not including entertainment and other superfluous expenditures (just because you like going out to dinner and a movie once a week, doesn't mean you need to). You should, however, include monthly bill payments in your fixed expenses, as paying off debt is a crucial step in establishing financial stability. Finally, "Wants" are things like entertainment spending, new clothes or jewelry, trips, etc.

Now that you have an accurate picture of your financial situation in front of you, it's time to do the dirty work. What can you afford, and where do you have to make cuts? The first things that need to be taken into account when determining where your money goes each month are your "Needs". Once those are accounted for (including, if at all possible, paying into a savings account), you can start adding some of your "Wants" to the list prioritize these, as it's unlikely you'll be able to accommodate them all. Also, be honest with yourself when identifying "Needs" vs. "Wants". A top-tier cable service with 1,000 channels is not necessary. Neither is a fancy gym membership (especially if you don't use it much). Being honest with yourself and limiting over-the-top expenses is not only the financially responsible thing to do, it will free up more cash for other items (like occasional dinners out, or a movie rental membership).

Once you have a budget worked out for yourself, make sure you keep it on hand a budget is useless if you don't use it. Update it often, and feel free to make changes and alterations if you need to. Think of your budget as a fluid, living document. Your needs may change from month to month or quarter to quarter, and your budget should reflect that. Finally, don't get discouraged if you go over budget one month. Remember, it's a tool, a guideline. If you use it correctly, it will help you achieve long-term financial stability.

Escape Austin real estate operates in central Austin. Their site has map based search for Austin homes along with a Austin real estate blog.

Rising gas prices along with general increases in cost of living across the board are forcing many people to tighten their budgets and cut excess spending. In order to maintain a certain standard of living, people everywhere are looking for new ways to stretch their paychecks and make ends meet. While most people cannot realistically cut the cost of gasoline from their budgets, millions are finding ways to creatively cut back on fuel costs. Here are just a few ways you can help minimize your gas usage and save a few pennies at the pump.

1. Ride a bike
Studies have found that the average car trip is less than three miles. In most areas, this distance cane be covered on a bicycle without any trouble in fact, many urban areas are seeing a sharp increase in bicycle commuters. While a bike is not the most practical mode of transportation for every situation dropping the kids off at piano lessons, for example (unless everyone can ride their bikes, and you don't mind waiting until they finish to ride back home together) you might be surprised at just how efficient it can be. A trip to the grocery store is infinitely manageable, though you'll likely have to go more often and buy fewer items each time (bikes, sadly, lack trunk space). But think of the exercise you'll get, and the money you'll save on gas plus, you'd be hard-pressed not to find parking.

2. Take public transportation
Many areas offer reliable public transportation at a fraction of the cost of a tank of gas. While this type of transportation may be a bit less comfortable than driving yourself, and will likely take longer, think of the benefits no stress of maneuvering through traffic, no added pollution (on your part, anyway), more time to read or listen to music (that you would otherwise spend driving), and a significant drop in your transportation spending.

3. Drive smarter
If and when you do drive, limit gas expenditure by driving the speed limit and staying with the flow of the other cars on the road especially in traffic. Stopping and starting again and again quickly burns up gasoline. So does speeding. Also, whenever possible, consolidate your errands. Sit down and map out your errands for the week (or month) and schedule them to get as many done at once as possible. This will help you save both time and money. You'll also be less likely to buy things impulsively if you have a full schedule of errands to run (also a money-saver). There are other, smaller things you can do, too. Always remove unnecessary items from your car (particularly the trunk), as the added weight can minimize your fuel efficiency and burn gas faster. Don't fill your gas tank during the heat of the day, because you'll actually get less gasoline for your money than if you fill the tank in the morning or evening, when the gas is cooler and more dense (this won't save you a lot of money on the spot, but over time those pennies add up). Skip trips that you don't really need to make, like going out for no particular reason there are plenty of ways to entertain yourself that don't waste gas.

The bottom line is, even little everyday things can have a big impact on your fuel usage and spending over time, so carefully consider your options and think before you drive your budget will thank you for it.

Ki works as a real estate agent in Austin. His site provides information about Austin real estate along with a free search of Austin MLS. He also provides monthly statistical updates on his Austin real estate blog.

When thinking about the economic slowdown now gripping the United States, one might think of the naked emperor of yore, who could not realize his condition until told by a child. By the time analysts and the White House recognize the extent of the credit crisis, its effects will probably not be noticeable. So where are we now? Several times since last August's signs of an imminent drop in growth, markets have rallied due to speculation that problems in the area of sub-prime mortgages have "bottomed out." Alas, thus far it appears to have been in vain.

On April 25th, Reuters and the University of Michigan reported in their Survey of Consumers that consumer sentiment fell ever deeper in April to settle at 62.6 from 69.5 in the preceding month. Not only is this the third straight month that consumer's outlooks have remained downbeat, but this month's ratings are the lowest in 26 years. The last time consumers' finances were as stressed was in 1982, which was due to the "stagflationary" economy of the time. Stagflation refers to a stagnating economy with low or limited growth prospects coupled to high inflation. The recent recession came from a different set of circumstances, but consumers are feeling the pinch all the same. While inflation remains a key factor for monetary policy makers and politicians, estimates of core inflation (which excludes volatile food and energy prices) remain low for now.

This is a good thing, because it has allowed the Federal Reserve a lot of leeway regarding monetary policy. They have cut the interest rate they charge for lending to commercial banks by nearly three full percentage points since the onset of the credit crunch last summer, and are poised to cut rates 25 further basis points at their next rate-setting meeting April 30th. However, interest-rate futures contracts also predict a 20% chance that they may not cut the rate at all, signaling a possible end to further monetary stimulus. It is unclear whether inflationary concerns or macro-economic stability is guiding the Fed's decisions because, since rate cuts began, food and energy prices have also skyrocketed.

While this doesn't normally affect core inflation to a significant degree, over a protracted period of time prices will continue to increase for everyone. In addition, the Treasury's stimulus package is set to begin arriving to millions of American consumers at the end of April, four days ahead of schedule. The Bush administration and other prominent authorities have touted the $152 billion influx as a means to increase spending, which accounts for two-thirds of the US economy. While consumer spending should begin to pick up somewhat, surveys have shown that many people plan to spend their check one of two ways: relieving personal debt (which reached epic proportions in 2007), or adding to savings. This reflects both how necessary a lump sum of cash is to many poor Americans, and how much spending has been curbed. Until spending picks back up, the service sector will continue to ache. Promising numbers in manufacturing orders for April also reflect strong fundamentals, even as the housing and construction industries continue to slump It may be presumptuous to assume that the US is out of the proverbial woods, but there may yet be light at the end of the tunnel.

Ki lives in Austin and works as a real estate broker in the Austin real estate market. He provides a free search of the Austin MLS on his website along with information on mortgage interest rates.

This week, a storm of bad news gave markets cold feet, resulting in Friday's 250-point loss. While this pattern of volatility has been the status quo for stock exchanges worldwide for the better part of the year-to-date, another factor has caused at least as many difficulties for a much larger percentage of the global population: the recent skyrocketing prices in energy and food. Wheat and other cereal prices have more than doubled this year, causing widespread effects ranging from speculative overbuying, which exacerbates the problem, to food riots in many poor countries. Millions of children around the world are likely to suffer from malnutrition in coming years if prices stay at or near current levels, according to International Monetary Fund (IMF) estimates.

Part of this unfavorable price increase has been due to shifting ideas about energy consumption and the press towards the use of alternative sources of fuel other than gasoline: namely, the subsidies issued by many governments of developed countries to change over to ethanol and other plant-based hydrocarbons, such as that made from palm oil (a particularly environmentally destructive process for ecosystems). Since these subsidies and programs have been introduced, farmers are often able to make better returns by selling their crops to biodiesel companies than to food companies. Until economic incentives change, the supply end is unlikely to provide solutions. For many of these farmers, these developments mean they are able to make a decent living for the first time in years, and they desperately want to (even if it results in local food shortages sometimes).

While this widespread problem affects consumers all over the world, these micro effects are only half of the story for gas-sensitive American consumers. Energy prices have taken headlines this year due to speculation and supply concerns from OPEC and South American countries after hitting the psychologically important $100 a barrel mark for the first time in the third quarter of 2007. Crude prices remain stubbornly above historical trends, even as suppliers contend that output need not increase. Analysts have also projected US gasoline prices to climb above $4 a gallon during the summer, another equally unprecedented number that may be tough pill for consumers to swallow, after the one-two punch of a national housing slump and the global credit crunch.

Should oil suppliers continue to maintain current output levels, demand is eventually likely to contract. But they aren't the only links in this chain. If oil becomes a less attractive option to Americans, oil companies may eventually be priced out of the market. Many have been keeping an exceptionally low profile in recent months. Auto companies play a huge part in the process, but shrinking sales and looming layoffs will likely increase the pressure towards manufacturing lower-emission vehicles. But the single biggest mover and shaker will be the government, which has the ability to regulate both inflation (through the FEDs influence on mortgage interest rates) and the move towards more sustainable technologies. The next US president will have the ability to help determine how long the lone superpower continues to expose its Achilles heel, but at some point all eyes will be on the Federal Reserve if inflation once again rears its ugly head.

Ki works as a real estate agent in the Austin real estate market. His site provides a free Austin MLS search along with updates on the Austin market on his Austin real estate blog

As the sub-prime mortgage scandal continues to play out badly for many US companies, more and more questions have been raised as to whether the impact of a slowdown in one area will translate into a nationwide, or even global, recession. Growth prospects within the US are limited for this year by the unprecedented scale of bad securities that have become investments for many companies around the world, exposing them to grave losses and destroying investor confidence. According to polls, more and more Americans are becoming wise to the potential crises and have shored up spending, in turn triggering further softening of retail markets. One cause of this problem with American consumer spending, the practically guaranteed market for many goods even in tough financial times, is that the borrowing people must first default on their mortgages before the securities (that their loans have been repackages and distributed) can truly become worthless. The speculation (or realization) that they will be unable to pay off their loans has led to the economic slowdown of the past several months, even though mortgage defaults have barely hiccuped in the same period. Nevertheless, the certainty of two million or more foreclosures over the next year cannot translate into hefty consumer spending, because so many consumers will be unable to make ends meet and many more will be on the verge. While a plan has been introduced by the Bush administration to freeze mortgage loans for an unspecified number of borrowers, no reference to the specific criteria used to decide who is eligible has yet been made. Thus the underlying cause of this shifty-eyed economic malaise is in no way addressed. Now the President has stated that the economy at large runs a great risk of recession without his impending stimulus package. Unfortunately, no one who can't pay for their house will be able to pay any taxes or credit card bills (which famously outpaced the median income this year), or for other things that cost money. A tax cut may be able to stem the defaults for a little while if implemented quickly, but if the Federal Reserve (the other institution that can help steer the economy) is any example, lip service and hawkish reticence is likely all the average American can expect. As job creation slowed to terrifyingly low numbers in November, (a paltry 18,000 new occupations) the US government finally issued a statement that growth cannot be expected to surpass 2% this year. Before it even started. So, is recession inevitable? Well, if the definition of a recession includes "no longer being able to spend more money than one makes," or collectively changing expectations about wealth and the common good, then the answer is yes. If we continue on a path of breakneck consumerism, we will trade our economic security. No one is going to complain that Americans will always spend. After all, as a market of last resort, the US consumer has, time and time again, been able to keep the growing world economy robust and secure. But if these attitudes don't change, a recession will be the least of America's worries. Escapeso is a realty company that helps buyers locate Austin homes. Buyers can start looking for homes online using their Austin MLS search. Escapeso also provides a blog focusing on Austin real estate.