Consider these scenarios to help reconsider and rework your budget after a move.

While budget planning might not be your idea of a good time, it’s a necessary step to financial stability. If you have moved recently, now may be a good time to revisit your personal budget strategy.

Perhaps the move itself has changed your household budget? Here are some scenarios where that might come into play.

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Scenario #1: The expensive move
Whether there were unforeseen costs in your move or you did not have a firm grasp on your moving budget to begin with, sometimes a move will be more expensive than you bargained for. This can certainly affect your short-term household budget. You will likely need to do some budget planning — including cutting back on expenses for a while — until you get back on track.

In this scenario, see where you can gain some savings. Food and entertainment expenses should be the first place you look. Maybe you can skip the cable hookup for a month or two until you reset your finances. Perhaps you might not spend money out on the town for a little while until you feel comfortable about your budget situation again.

Can’t find room to trim? It might be time to dip into your savings to cover the gap and help get you through in the meantime.  

Scenario #2:  The new job
Did you move to take a new job? This could change your budget in a few ways. Maybe you found a better-paying job that will help with your budget goals. Perhaps your better paying job is located in a city with a higher cost of living. Or maybe the job you found is a great fit, but not as profitable. Your income will certainly affect your long-term household budget, so this is a great time for some insightful planning tailored to your employment situation.

Once you have a reasonably accurate idea of how much you will bring home, take this new information and apply it against your current budget. If you are making more money, decide what you want to do with the surplus. Do you want to apply it toward savings? Do you want to use it to decorate your new apartment? The choice is yours.

If you are effectively saving less money, you will have to take a hard look at your budget and determine where you might balance expenses. Remember that you are attempting to make long-term budget changes, so relying on your savings, for instance, as a quick fix will not hold you forever.

Scenario #3: The new city
Moving to a new city just might make a difference in your cost of living. You may find that goods and services cost more in your new town, or you might discover that moving has placed you in a neighborhood where things are less expensive. Either way, a change of venue may well affect your budget.

Do some research on your new city, and compare it to the costs of your old city. CNN Money offers a cost of living calculator that might help you judge the difference between your old city and your new one.

Once you have a good idea how far your money will stretch in your new town, you will need to adjust your budget to fit the new costs.  

Budget planning is essential
Budget planning is an extremely important step to keep you on track with your finances. Consider these budget scenarios to help you move forward carefully with your money plan after a move. Remember that holding to a budget plan means keeping control over your money, ultimately moving you toward financial freedom.

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Pay off debt or save? These personal finance books will help you decide.

Whether you’re budgeting for your first apartment or saving for a once-in-a-lifetime vacation, you should know how to manage your money so you can achieve the next step of living out your dreams. Since we’re in an ever-changing economy, some of the financial information out there is outdated, so you need to know where to look to find out how to make the right decisions. To help you navigate murky financial waters, check out our suggestions for the five best personal finance books, all printed since late 2009. The following books are particularly recommended for those in their 20s and 30s.

“The Money Saving Mom’s Budget” by Crystal Paine
Why: Crystal Paine, author of the popular blog MoneySavingMom.com, has been writing about frugality and living debt-free for the past five years. Her seven rules to financial success are easy to understand and include tips for budgeting, starting a side business, reducing clutter, couponing, living frugally and getting out of debt for good. Since she encourages readers to break out the lessons over 12 months, you can focus on one at a time – or all of them at once if you are so inspired.
Publication date: Jan. 10, 2012

“Does This Make My Assets Look Fat?” by Susan L. Hirshman
Why: Stop the cycle of comparing what you have to what others have with this book for women, which is structured like a diet book and written by a J.P. Morgan financial adviser. The three-phase plan includes an evaluation phase, induction phase and maintenance regimen to help you develop realistic, achievable goals, make wise financial decisions, figure out how to invest based on your personal beliefs and learn when to ask for help from a financial professional.
Publication date: Sept. 14, 2010

“The Total Money Makeover” by Dave Ramsey
Why: Originally published in 2003, “The Total Money Makeover” is on its third edition, and with good reason: Those who have read and actively follow his principals have reduced their debt and increased their wealth by thousands. His steps are simple: Save $1,000 as an emergency fund; pay off debt from smallest to largest; pad your emergency fund by saving three to six months’ living expenses; invest 15 percent of income into a retirement fund; save for your kids’ college and pay off your mortgage.
Publication date: Dec. 29, 2009

“From Ramen to Riches: Building Wealth in Your 20s” by James Wood
Why: If you’re in your 20s and are wondering where people find the money to save 10 percent of their incomes, this book is the blueprint to your financial house. Following its practices will prevent you from falling into the same money mistakes as other recent college graduates (credit card debt, little savings, no retirement and living paycheck to paycheck) – or, if you’re in your mid- to late 20s and you already have made a few of those blunders, this book can help you get out of that rut and onto the path toward financial freedom.
Publication date:  Oct. 6, 2010

“The Money Class: How to Stand in Your Truth and Create the Future You Deserve” by Suze Orman
Why: The tell-it-like-it-is, jacket-wearing financial guru’s latest book is a little different from the others in that it is in a nine-class format, focusing on how to manage money during a troubled economy. Suze tells you how to blend money and family, avoid real estate mistakes and get back on track after a career setback. This book is for all ages, incomes and financial situations, as she explains how to plan for retirement no matter how old you are.
Publication date: Jan. 10, 2012

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If you overspent in 2011, get your finances back in order with a few simple steps in 2012.

Blue Monday is the lesser-known ugly stepsibling of Black Friday and Cyber Monday. In short, Blue Monday is the name given to what has been determined to be the most depressing day of the year, the Monday during the last full week of January. Though its origins are primarily commercial (as a way to get people to travel), the reasoning behind it makes sense – Christmas has passed, New Year’s resolutions have failed and people are in debt from overspending during the holidays.

If the latter sounds like you, don’t let Blue Monday – or any day of the week – get you down. While you can’t recreate Christmas, dig yourself out of your financial hole by following the steps below for 30 days, and repeat as often as necessary to be out of the blue and in the black again.

Track your spending

You may think you know where your money goes, but your spending on little things will likely add up in a big way. Keep a small notebook and pen with you during January and write down what you spend outside of bills for a week.

Stop spending

Now that you know where your extra money is going, it’s time to rein it in. Resolve to do a no-spend month, which means you spend only on necessities – groceries, bills and gasoline. If you need inspiration, Google “no spend month” and read about many frugal bloggers who are doing or have done the same thing.

Snowball your debt

No, this doesn’t mean put your credit cards in the snow. Instead, vow to pay off the credit card either with the highest interest rate first or the lowest balance – experts are torn on this one, so it’s up to you what will motivate you more. This means if you have multiple cards, pay only the minimum on all but the chosen card (with either the highest interest rate or lowest balance), and aggressively pay that until it is paid off. Then move on to the next card, until you’re out of debt.

Don’t forget to save

Ideally, you should save 10 percent of your monthly income, but if you can’t do it while you’re paying off debt, at least save something – 5 percent, all of your loose change or a certain amount (say, $200) each month.

Cut back where you can

Turn off lights when you’re not in the room and unplug “energy vampires” such as cell phone chargers and hair dryers. Switch to basic cable or watch TV on the Internet. Cook meals at home, eat or repurpose all your leftovers and bring your lunch to work. Don’t run the water while you’re brushing your teeth, and wash clothes in cold water on the Regular cycle (as opposed to Permanent Press). Walk or bike to places in your neighborhood, or when you use the car, try to run as many errands together as you can. These seemingly little changes could make big impacts on your utility and gasoline bills.

Prepare for next year

Don’t let what happened to you this holiday season happen in 2012. Instead, once you find your way out of your debt hole, set aside $5 or $10 per week in a savings account or drawer to prepare for next year, or purchase gifts all year whenever you see them on sale. That way, not only can you avoid the rush to buy items in the crazy, marked-up month of December, you can relax and enjoy your Christmas decorations at home. And there’s no gift like peace of mind.

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