One of the things I hear when I discuss jobs and careers with people is how people can be better at budgeting.  I won't argue with that at all – there's always room for improvement.

If you want to learn good budgeting, you can grab a basic "For Dummies" guide and get all you need for the basics.  However, one of the problems of budgeting is understanding context – why something matters.  So one of my tricks is to imagine, when I pay for something or estimate the cost for something, what else it could buy and vice versa – or how much you'd save if you could eliminate that expense.  See how costs vary around the country.  Play around with the numbers, and you'll find it very educational.

A few examples from my own experience to make you think:

• In California, I pay more in rent and utilities per year than I do for food.  When I lived in Ohio, it was about even.  Thus things like getting a roommate produces a lot of savings.
• Per year, for a decent car loan and car maintenance, you could by an incredibly maxed-out laptop and have cash left over, or two decent laptops.
• One new-release videogame would pay for 4-5 days worth of food if you're frugal, or 2-3 meals at a sit-down restaurant.
• Where I live the cost of 3 decent-sized hardbound books would buy me 2-3 pairs of pants at your average non-fancy department story.
• I found that when I didn't use a car, train/bus fare was more than I'd pay in gas to drive the same distance, but was often faster, and avoided tolls.  In addition if you can do without a car, you can often save thousands of dollars a year in repair, loans, and insurance.
• My average water bill would buy about 3 paperback books, two hardbound books, or one videogame.
• Unlimited text messaging on my cell phone was as cheap as a few meals a month.

Playing around with the numbers really puts things in context.  Give it a try.

- Steve