Building a Budget

Step four: track, trim and target

As you track your monthly expenses, you may need to trim expenses. Some expenses are more easily trimmed. For example, you need to make the house payment and get groceries, but you may be able to go without seeing that new movie. Cutting back is usually a better place to start than cutting out.

If your budget is realistic and if you use it to guide your expenses, you'll be better prepared for emergencies - other unexpected costs. You'll also be better prepared for a financially secure future.