Does the word “budget” make you cringe? The fact is, learning how to work with one is important for building a strong financial foundation. “Budgeting provides you with a financial plan and allows you to manage your money, rather than having your money manage you,” says Andy Johnston, Financial Center Manager with Fifth Third Bank.

A common misconception is that being on a budget is boring. Johnston says it’s not a matter of cutting the fun out of your life – it’s about planning for it in advance. “The key to budgeting is keeping track of how much you can spend in all areas of your life, including the things you enjoy,” he says.

Many people find it difficult to stick to a budget over time. To make one work for you, try selecting strategies that match your money management style. Consider the following:

• Line-by-line budgeting – A more traditional approach to budgeting, this strategy may work if you prefer knowing where every dollar is going. Start by totaling both your monthly income and fixed expenses, such as housing, utilities or car payments. After subtracting your fixed expenses from your monthly income, you have the amount you can spend on variable living expenses, such as groceries, gas and entertainment. You can further break down your variable living expenses and decide how much to allot for each category. For example, allowing $200 each month for groceries. Keep in mind, you will need to track how much you are spending in each category so you don’t go over budget in any one area. If you find you need to spend more in some category for a month or two, make sure you make the necessary adjustments to the other categories within your budget. Free computer software, such as Quicken®,can give you a better view of your complete financial picture.
   
• Bucket budgeting – If you dislike tracking every dollar, this strategy may be a better fit for you. Start with opening two checking accounts and one savings account. Decide how much you can put aside each month toward savings and have that money sent directly from your paycheck into the savings account. Next, total your monthly fixed expenses. Have this amount sent to the first checking account and set up automatic bill pay. Your remaining money can be sent to the second checking account and used for variable living expenses. Following this type of budget helps keep you on track while making sure you always have enough money for your needs. You won’t need to track every dollar – you just need to make sure your spending doesn’t exceed what’s in your second checking account.
   
• Bi-weekly budgeting – For some people, budgeting an entire month’s worth of expenses is too overwhelming. If this sounds like you, it may help to create a budget based on a bi-weekly schedule. Using this type of budget allows you to manage your money within a shorter time frame and helps you divide each paycheck between fixed and variable expenses, rather than working with a month’s worth of income. It can also help you time out your bills and budget based on your pay schedule.

Fifth Third Bank offers Dream Guard to help you successfully create a budget that fits your needs. Dream Guard features several financial calculators and worksheets to help you plan for your present and future. If you need additional advice, Fifth Third financial professionals are available to answer your questions. “We welcome the opportunity to sit down with you to assess your finances and budget and create strategies that will work for you,” says Johnston.

To learn more about budgeting, contact Fifth Third at (866) 475-4201 or visit 53.com.