Whether you're saving for your kids' college education, a new home in a nice village, or a special out-of-the-country vacation, start saving early. It is easy to put off saving until next month, but you never know what will come up that will change your plans. So instead of putting it off, begin by making a small, automated contribution to your savings account just after each paycheck. When you see how much you've saved, you will, undoubtedly, never buy impulsively again. 3. START TO COUNT IT ALL DOWN Many people don't even know where their money is being spent. To them, budgeting finances is simply laying out the money on the table, apportioning them in envelops, and labling each envelop with Bills, Rent, Amortization, Transportation, Food. Once you have created your budget, you will know if you are spending wisely or not and you may be able to find ways to invest at least enough money in a good mutual fund. Another way to find out where your money goes is to collect all your receipts and credit card bills from the past few months. In this way you will keep track of your spending and think twice next time on purchasing on an impulse. It is difficult for people to track their spending and whether it is wise or not because they cannot decifer between needs and wants. This is one of the biggest hindrance towards putting into practice good personal finance budgeting. You may need things in life including food, water, shelter and clothing. This is where personal budgeting kicks in. Personal budgeting is when you allot certain amounts for your personal needs. It is not as difficult as simply budgeting because you don t have to worry about whether other people would find your way of living livable or not. The first thing that you budget for yourself is, of course, food. If the expenditures you make are larger than your income, you are going to have a look at cutting back on your spending. This means that your home budgeting should be made to work and its results should be seen in the following month. The easiest place to begin cutting corners are on the discretionary expenses.