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decide to live within your means (your income) establish goals establish a budget to meet those goals determine how much to save to meet these goals in reasonable timeframes prioritize major bills--rent/mtg, utilities, car payment, insurance find ways to reduce the cost of these major bills determine everyday spending habits and pay for them with cash find ways to cut these daily costs determine what is reasonable to spend monthly on food to eat at home set aside a small amount for occasional personal care and entertainment--hair dresser/barber, movies, Bowling etc (gotta have some fund) and find some free entertainment. establish an 8-month of expenses savings account. Make this savings accouont your overdraft protection for your checking account to avoid overdraft charges and lines of credit. Replenish when it is used. save the rest to reach goals with what is left over Put large chunks of savings money into CDs that are laddered (mature at different timesJ) and borrow against them for low-cost loans rather than payday, title, check advance, or furniture loans--pay yourself back! When saved enough for your goals go through with it and enjoy your accomplishment. Goals and budgets must be rechecked and revamped as life goes along.

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