Budgets and Diets: Easy to make, hard to stick to

Hello 2011! It is that time of the year again where we get to make our resolution for the new year and then desperately try to stick to it for all of January. The number one resolution for the new year is to start a diet (According to CNN. But really, is anyone surprised?). Where is the love for personal finance plans? To be honest, dieting and budgeting should go hand in hand. (And not because a starvation diet saves money on food... although that might also be true) Both take planning in the beginning, hard work and dedication, and daily commitment but reap huge payoffs in the end.

Let's break it down.

Step 1: Create your plan. You can't get your body or your finances inshape by just talking about it unless you have an actual plan. Where to start? A good idea is to use the 60% Solution. Start with your income. Where should it be going?

60% - Committed expenses (this is your house, electricity, taxes, insurance, cable and TV, phone bill)
10%- Retirement. How to save for retirement? Check out this post.
10%- Surprise. This is that cavity that you weren't planning on having (I brush my teeth every day!), or the car battery that randomly dies on you ($100 later...), or your Mom's birthday (Just kidding! You should know about this one!)
10%- Savings/Debt. Pay off your debt, then set up savings. Yes, that means that you are putting 10% into retirement AND 10% into savings. You have to look at in as "paying yourself first". It is just like 6am bootcamp: it sucks doing it, but you will be so glad you stuck with it in the end.
10%- Fun money. I know it can be sad that ONLY 10% of your income each year goes to massages, vacations, Louis Vuittons, manis/pedis, etc. But start with these numbers and see where you can save in the "committed expenses". Call your cable company: Do you realize you might be paying extra for 6 different ESPN channels that you might never watch?

Step 2: Track your plan. This is the equivalent to a food diary in your diet plan. The coolest part? You don't have to write in a book everyday. Since you are reading this blog, you probably have the internet, and since you have the internet, you can use this nifty website called Mint. Mint is a free site that links your credit and debit cards to a budgeting plan. It will not only keep track and  tell you when you have reached your "maximum amount you are allowed to spend on shoes", it can be set up to send you an email or text that says "PUT DOWN THE SHOES AND WALK AWAY SLOWLY".

Step 3: It is okay to reward yourself. Any great workout and diet blog (Such as Fun, Fit, and Fabulous) will tell you that it is okay to mess up from time to time and have alittle slice of heavenly dessert because of valentines day, your birthday, or because it is wednesday. If you accidentally buy those stilettos calling your name, don't give up on your budget just yet. You will make mistakes. On the same note, it doesnt hurt to use "rewards" to your advantage. "If I save ___ amount over the next month, I will use some of my fun money to treat myself to those stilettos" In the end? you still get that pair of stilettos AND you get to use your fancy new budget.

Best of luck with your new budget and diet plan and any other resolution you might have. I honestly hope you make it the full year and not just until february. Set yourself up for success!