There are as many ways to budget and save as there are personalities. You may be a type-A, strict, and regimented sort of person or you may be a fly-by-the-seat-of-your-pants type. There is a budget plan for each and every type. The key is finding a style that fits with your natural tendencies.

One style of budgeting is the pay yourself method. This method takes into consideration all the real-world things people want and need to spend money on. Think vacations, a new car, clothing, etc. The pay yourself first method commits to paying for these items - or saving the money for them in a savings account - before designating money to bills and other fixed necessities.

The pay yourself first method calculates the financial commitments that are important to you and your family, sets that money aside, and uses the remainder income for the day-to-day budget. This is the opposite of traditional budgets that consider bill paying and fixed expenses the priority and setting aside...