You have tracked your expenses in 2013 and now you are ready to create a budget for 2014.  If you live alone deciding how you spend money is your call.  If you live with someone and share some or all expenses, the budgeting task is much more challenging.

The next rule for MoneyYOYO is everyone spends money differently.  Some people care about where you live, others just want shelter.  Some people love eating out and other like to eat in.  Some love to go to the movies and others like to watch a movie at home.  The list goes on and on.

If you do share expenses with another person or persons, all of you need to track those shared expenses.  Do you share expenses for housing only or do you share other buckets of spending or all spending?

Now you need to create a budget for those shared expenses. It will be quickly clear if you are in agreement or disagreement.  If you find you are spending money differently, you need to spend an evening or an afternoon or both working out the differences.  Start with the big categories of spending and work you way down.  I am sure compromise will be a necessary tool.

These discussions take on a different vibe if it is your significant other.  Remember there is no right or wrong, it is just a preference for what is more important to you.

Financial fact:  U.S. revised growth was up 4.1% on an annual pace in the third quarter.  It is the strongest advance of growth in nearly two years.  (Commerce Department)

Comment:  For the last 15 years, there has been a downsizing, downscaling and re-evaluation of values and what constitutes the American Dream.  (John Zogby, “The Way We’ll Be:  The Zogby Report on the Transformation of the American Dream”)