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.
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.