Hopefully I am convincing you to develop a budget if you do not already have one. The best way to build a budget is to start by writing down everything you spend for a three month period. I mean everything. This will at least give you a window into what categories to set and what a yearly budget could look like. After three months of collecting data, you are ready to take your first stab at setting a budget. Only now instead of just tracking what you are spending, you decide how much you want to spend in a certain area.

Expenses and income must be calculated on a monthly basis. Some bills like your electric bill already come monthly. Others, like maybe your trash collection, might come every three months. Then again your paycheck might come every two weeks. All these transactions are averaged into what they are monthly and this gives you a basis to compare, track past expenses and project how much you want to spend in the future by budgeting. You might be above or below for a certain month; however, your expenses should be evaluated quarterly to see if they are on track.

I will not go into a detailed lesson on budgeting since this will be read in various countries with different currencies and various costs of living. I have included a sample North American budget in A Practical Path to a Prosperous Life in Appendix E. Many financial teachers have done a lot of work in this area and have done a far better job than I do.  There are a lot of budget helps available on the internet or by purchasing software that helps you with budgeting. Don’t’ wait…start now. Take dominion over your finances. It will make you more prosperous.