To avoid getting into financial problems in the future, you must understand your flow of income and expenses. Some people call this making a budget. Others find the term budget too restrictive and use the term spending plan. Whatever you call it, spend at least two months writing down every expenditure. At each month’s end, compare your total expenses with your income. If you’re overspending, you have to cut back or find more income. As best you can, plan how you’ll spend your money each month ahead of time.

If you have trouble putting together you own budget, that’s ok! Consider getting free help from outside sources and websites like www.everydollar.com. There are tons of interactive online budgeting programs and tools!