Such plans may include a family vacation to Disney World or the construction of a new deck for the house. Once you figure out where all your money is going, you can make sure that you are not wasting. 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. Here is a simple spending system that can greatly help your personal finance budgeting: - Create a personal finance budget that you can use - Save 10% of your income - Always know exactly how much you have left to spend - Instantly know the impact of every spending decision - Track all your purchases - Pay your bills on time - Effectively manage credit card spending Many people create a financial budget based on other people financial worksheets. You can make use of a pie chart to keep your budgeting handy. In your chart, the most important necessity, which is food, should occupy the biggest slice of pie. The money allotted for it should only be enough to buy a cheap but nutritious and delicious meal. Here are further budgeting tips that can prevent you from acting like you haven t eaten for decades, and grab almost everything you find edible from the grocery racks. CUT ALL CREDIT CARDS It is best if you don't use credit cards, or even own one. If you think you're responsible enough to use it in emergency situation, then leave one for those times. Buying a Gucci dress for a hot date isn't an emergency situation. Paying for school tuition fee or electric bills is a right example of emergency situation. A budget should not solely be concentrated on expenditures alone. In your home budgeting, include your income as well. Income means the regular pay you receive from the office plus the side work you do that gets you paid as well. Anything that brings money into your doorstep on a somewhat regular basis. How to begin household budgeting? There are new ways to help you do your household budget: you can download worksheets from the internet or you can conveniently make one for yourself. You can start your household budgeting by making a layout of your expenditures and income by month for the past year.