Step 5: Adjust your habits if necessary. Once you've done all this, you have what you need to complete your budget. Having documented your income and spending, you can start to see where you have money left over or where you can cut back so that you have money to put toward your goals. Want_to_have expenses are the first area to look for spending cuts. Can you skip movie night in favor of a movie at home? Try adjusting the numbers you’ve tracked to see how much money that frees up. If you’ve already adjusted your spending on wants, evaluate your spending on needs. You may need internet at home, but do you need the fastest available?
Get Your Budget on Track. You're not going to get ahead financially until you develop a reasonable budget _ one that allows for both some indulgences and for emergencies _ and then stick to that budget. Budgeting your money is the cornerstone of a sound financial plan. You might scoff at the idea of creating a budget _ after all, you pretty much know what you spend every month, especially on big_ticket items like rent/mortgage or car payment.