Personal Budget

A personal budget is a finance plan that helps decide your future personal income towards savings, dept and expenses.  Fixed expenses are expenses that you use towards the essentials.  They usually stay the same price. Some fixed expenses are your car payments and mortgage.  Flexible expenses are the expenses that change all the time.  A few examples of flexible expenses are going to the bars with your friends, restaurants with the family, and groceries.

Simple and compound interest on your savings account is important to know.  Simple interest is normally used for a single period of less than a year, such as 30 or 60 day, while compound interest can be yearly, semiannually, quarterly, or even continuously.

One importance of saving is that if you have gotten fired from your job, or let off, then you'll have no income to pay off all of your bills, or to have fun.  If you were to save up, per-say over 10,000, you should be good for a few months.  Some great advice is the sooner you start saving, the better. Start saving, so then you are ready for anything that happens in the future.

If you are wanting to spend your money, instead of save it. I'd reconsider that thought. Though it's very understandable that you need to pay off your fixed expenses, but be very lenient on your flexible expenses.  Instead of going out and spending your extra money on fast food everyday, get groceries, that you absolutely need and live off of them.  Afterward, take your extra money and start saving, it'll be for the best in the end.

News Article:
http://www.usnews.com/topics/series/money_saving_tips

Resources:
Objects, G. (2002). Interest. Retrieved 5 18, 2011, from Simple and Compound Interest Rates: http://www.getobjects.com/Components/Finance/TVM/iy.html

Importance of Saving Money. Retrieved 5 19, 2011, from Extra Income Simplified: http://www.extra-income-simplified.com/Importance-of-Saving-Money.html