If you had a fairy godmother or a genie in a bottle, what would you wish for right now, today? What would you like two years from now? Five years? A budget - a spending and savings plan - can be your genie in a bottle. As your money 'servant,' it will give you control over your finances, plus the cash you need to make your dreams come true.

The major elements to include in your spending plan are:

• Your financial goals - both short and long-term
• All sources of income
• All expenses.

You can use the chart in the next section of this guide, or create your own on paper or your computer. Here are some tips:

1. Take time identifying your savings goals, whether these are for a trip, a car or a computer; or going to college or university. Then determine how much, per month, you will need to save to meet these goals within a given time frame.

2. Think about your monthly expenses. It’s obvious that if you live on your own you will have very different, and more expenses than if you still live with your parents. But whatever your circumstances, write them all down.

3. How do your total expenses and savings goals compare to your total income? If they're less, great! If they're more, you'll need to revise some items, which means looking for ways to trim expenses.

4. Keep track of all the money you spend for at least one month. Do you really spend the amounts you estimated in your budget? Recording expenses will allow you to revise your budget, give you a clear snapshot of where your money goes, let you know of any budget categories you've overlooked, and tell you where you can cut costs.

5. Go to your bank, credit union or trust company - or visit their Web sites - for further information. Ask what kinds of accounts you should have, how the institution can help you meet your goals, and how you can manage your debts and make the most of your savings.

Your Personal Spending Plan
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