Budgeting in 4 Simple Steps

This is really easy but many do not do. It takes responsibility and perseverance and just like exercising, you see the pay off later.

1. Know your real income - do not leave anything out including tax refunds and bonuses.

2. Track your spending - now that you know how much you have, you must also know where you are spending. Again, do not leave anything out.

3. Cut out the wants - after doing no 2, you probably have a pretty good idea where your money is going and this is where self control comes in.  Buying another 2 pair of shoes when you already have 10 is a want, the same goes for that high - end vacation to Paris.

4. Set a Goal - what are your financial goals? How much you want to have when you are retired. How about that dream house, education..

5. Review and adapt - this is important. Review your income, your spending, your wants and needs and your goals.