In preparation for setting up a spending-plan, list on a separate sheet of paper all sources of monthly income including gifts, bonuses, tax refunds, cost of living increases, dividends and interest income, Social Security, pensions, etc. Note the frequency of each source. Total-up all sources of monthly income.

On a separate sheet, list all monthly expenses. Expenses are separated into two categories: fixed and flexible.

A fixed expense is one that remains the same each month such as a mortgage or rent, a loan payment, insurance premiums, an amount of money set aside each month for such things as gifts, motor vehicle maintenance or clothing and uniforms, for example. Total-up fixed expenses.

Flexible expenses are those which are directly controlled. These include household and grocery items, utilities, entertainment, meals away from home, out of pocket expenses, etc. Total-up flexible expenses.

All expenses are totaled and then subtracted from the total income figure for the month. Next, divide total expenses by the frequency of income or the number of paychecks the household receives each month. This tells you how much to set aside from each paycheck . (Note: If the expense total is greater than the income total, you are out of kilter financially. Begin to prioritize expenses by noting every expense for which credit will be utilized in order to keep in the plan. Then ask yourself if you want to borrow every month for these expenses.)

Enough money to cover fixed and some flexible expenses from each income period should be kept in reserve in a special expense account. This reserve method for expenses from each income period is utilized to avoid the paycheck to paycheck routine. Don't take the reserve expense checkbook shopping. Review the spending-plan each income period and up-date year-long spending plans quarterly. (place budget sheet here)

In order to achieve your financial goal, a certain amount of discipline is required along with some changes in your lifestyle as you set these goals.

A short-term financial goal are goals that you set and achieve within one month to one year. These short term financial goals can include a family vacation, birthday and holiday gifts, purchasing a TV or even paying off a credit card or other bills.

A mid-term financial goal are goals that you try to accomplish within one to five years. This can be in the form of purchasing a new automobile, paying off all your credit cards or even remodeling your home.

A long-term financial goal are goals that will take five years and longer to achieve. Examples of long term goals includes a college education fund, buying a house and retirement savings.

• Write down all your short-term, mid-term and long-term financial goals.
• Write down the dates that you set for attaining your goals.
• Be realistic with your goals.
• Be flexible as sometimes it is necessary to adjust your goals and strategies.
• Periodically review your goals and check your progress.
• Stick to the Plan that you budgeted for.

• Don't buy on impulse. Put items on an impulse list and wait 30 days to purchase. Obtain a minimum of three alternatives and comparison prices before purchase. Never have more than one item on the impulse list.
• Become a comparison shopper on all items you plan to purchase.
• Pay cash for everything or don't buy it.
• Wait for special sales - ask retailers when sale dates are planned.
• Periodically review your goals and check your progress.
• Double check value, repair ability, price, guarantees on all major purchases.
• Learn to read and understand all advertisements.
• Read all labels and product literature carefully.
• Use a list for grocery and household items.
• Go shopping alone - especially for household and grocery items.
• Buy private label brands where economical and practical.
• Learn to uncover gyps and scams.
• Never expect something for nothing - somehow you will pay for it.
• When writing a check for groceries make it for the amount of purchase only.
• Don't take a casual attitude towards money because it can bring about many financial casualties in the future.
• Maintain good records. Keep receipts and make reminders about cash spending.

• Don't buy on impulse. Put items on an impulse list and wait 30 days to purchase. Obtain a minimum of three alternatives and comparison prices before purchase. Never have more than one item on the impulse list.
• Write down all of the poor spending practices that you need and want to change.
• Write down how you plan to bring about the changes in each area.
• Set up and implement a spending-plan
• Discontinue borrowing and use of all credit cards
• Begin collecting and making notes on your cash purchase receipts.
• Begin saving one dollar-a-day (or dollars) and all pocket change, everyday.
• Look for alternatives and substitutes to spending
• Wait for the sales. Comparison shopping can save more than 50%
• Take advantage of factory seconds, rebuilt and used items where practical.
• Start doing things for yourself that others were paid to do previously.
• Separate shopping trips (when comparing prices, value, reparability, etc.) from spending trips (when actually making the purchase).
• Avoid carrying credit cards, too much cash or a checkbook on the shopping trips.

To create your own budget, use our easy Spending plan (Insert Spending Plan Doc here-Hyperlink) as a guide to better financial management.

• Manage your expenses so they don't exceed your income.
• Spend money thinking of your future as well as your present.
• Begin saving early to take advantage of compound interest.
• Avoid collecting credit cards and using them for borrowing.
• Always honor your debts and other financial obligations.
• Project your income and expenses for the next 12 months and track variances.
• Focus on the relationship between the risk and projected return of investments.
• Maintain organized records for tax and general financial planning purposes.
• Have a plan and a purpose for your investing.
• Obtain financial education to be in a position to make intelligent financial decisions.