Create and Stay on a Budget
Budgets are wonderful planning tools that can give you a clear idea of what you own and what you owe. A budget allows you to keep track of your daily expenses, forcing you not to overspend [source: Kiplinger]. A budget is also a means to reach your goals. By projecting future expenses, and recording them when they are paid, you can adjust your spending or planning habits [source: Kiplinger]. If you keep on top of how much money comes in and goes out, you won't feel like you're living paycheck to paycheck. A budget allows you to keep your fingertips on what you are spending as opposed to what you want to spend. As such, a budget will change your spending habits and allow you to make comparisons from one month to the next. Make sure, however, that a portion of your monthly income goes toward savings.