Spend Less Than You Earn

One of the primary keys to financial independence is spending less than you earn. In order to do this, you need to create a spending plan or budget.

A good budget is simple, flexible and easy to track. It will allow you the opportunity to see where your money is coming from (Income) and where it is going (Expenses). At the end of each month, review your budget and answer these questions:

• Are you happy with the way you spent your money?
• Did you get your money's worth?
• Were there any unanticipated expenses?
• Did you spend your money on things that you don't remember?
• If you had the month to live over, would you spend your money the same way?
• Are there things you wanted to do, but didn't because you didn't have enough money?
• What expenses can you anticipate for next month? Are you ready for them?
• Did you spend more than you earned?

Click here to open a ready-made budget spreadsheet in PDF format.
Click here to open a ready-made budget spreadsheet in Microsoft® Excel.