Spending smart is the key towards better finances. It's a way to set financial priorities. But before you get to setting your objectives, you need to take stock of where you're spending your money today. More than ever, really give financial budgeting a try for it may open your eyes. You might think of a budget as financial handcuffs - meaning you are restricting yourself from spending money on the things you want. Do not forget to include the coffee you stop for every morning before getting to work, or that soda you have in the afternoon after getting off from the office. If you can keep track of every cent and every dollar you spend, you will be well on your way to keep track of your larger bills at home. After at least several days, begin your home budgeting in a more detailed way. Ten percent is automatically added to your savings account every pay day Budgeting and planning means never finding an excuse not to save. 3. Investing Make an investment plan - Savings are meant to keep us warm during stormy nights; and when used wisely, savings can help us achieve financial freedom before we actually retire. You most likely know how much you earned last month, but do you know how much you spent? If you dont, you are not the only one who doesn't. According to survey, most people spend 10% more than they make! Why is it hard to track spending? It is difficult for people to track their spending and whether it is wise or not because they cannot decifer between needs and wants. Budgeting properly entails tracking all your expenses. The cash expenses will be difficult to keep record of if you are not aware. Lunches, coffee, parking ticket, beers, movies and the like are hard to remember unless you write them down as soon as they are incurred. As you go on with your budgeting, you can add more categories. Another problem that goes against your household budgeting is that most consumers overspend because they buy things on impulse. The next time you are tempted into making an impulse buy, ask yourself the following questions: - Should I spend my hard earned money on this? - Can I afford to buy this? - Do I need my money for something else more important?