Begin by listing your income for the month. This should include any paychecks you receive, as well as income from other sources like child support or investments. If you have a business, you should include the amount that you pay yourself out of the business each month.
Step Three: Limit Your "Wants" to 30 Percent. This sounds great on the surface. Can you put 30 percent of your money toward your wants? Hello, beautiful shoes, trip to Bali, salon haircuts, and Italian restaurants. Not so fast. Remember how strict we were with the definition of a "need"? Your "wants" don't include extravagances. They include the basic niceties of life that you enjoy, like that unlimited text messaging plan, your home's cable bill, and cosmetic (not mechanical) repairs to your car.