The Latest 'It' Item, 2009-Style: a Budget

Add up all those required monthly payments. Now you know where you stand. And now you can start to make your budget, trying to stretch your income to cover those required payments, plus food, utilities, gasoline and other necessary expenses.

Step 2: Making a plan: So far, all of your work has been done on paper. And you can continue making a paper budget, using some of the very helpful guides that are available. My favorite is "The Budget Kit: The Common Cents Money Management Workbook" by Judy Lawrence. It's available inexpensively on Amazon.com(AMZN Quote) or in bookstores.

But if you have access to a computer, there are several free online budgeting tools. Quicken started the online banking and tracking craze years ago with its software programs. Now, like others, they've graduated to the Internet. You can go to Quicken's Web site and sign up, creating your own secure password. Then using this secure site, you'll register the PIN and password to all your online accounts, from checking to credit cards to mortgage payments.

Every time you sign in, you'll get the latest balances on all your accounts. But this is more than a money-tracking service; it is also a simple budgeting tool that allows you to set up a spending plan, and instantly, graphically see how close you are to your category budget goals.

The program is so "smart" that it also reminds you of upcoming regular monthly bills, so you aren't tempted to touch your cash balances. If you pay your rent or electric bill or car loan around the first of the month, it will remind you that the bill is soon coming due, and that you should reserve your cash to pay that bill.