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Financial discipline begins by budgeting the money you make and the money you spend. While no one can escape unintended financial burdens, such as major car repairs or a new hot water tank, there are a number of steps you can take to solidify your personal finances. Start with a pen and paper or computerized spreadsheet, such as a Microsoft Excel file, and begin to lay out a budget.

Start with the most critical expenses. You need to budget the cost of rent or a mortgage, and other important items, such as a car payment. Student loans should also be budgeted along with other expenses which occur on a monthly basis. Long-term monthly payments should be at the forefront of your budgeting.

It is important when constructing a budget to pencil in an amount for personal, otherwise frivolous spending. Many of us are in the habit of reaching into our wallet while at the mall or a county fair and buying something unexpected on sight. This is a dangerous way to spend money. Often you will end up spending more than you intended simply because you did not budget in this type of spending. Instead, give yourself a monthly allowance on a Vision prepaid card so you don’t spend more than intended on unnecessary items.

Long-term budgeting should involve paying off any high interest loans or credit cards. Such debts can result in a cycle where it is difficult to get out of debt. Making minimum payments means you won’t pay down the principle for a long time and this can result in lifelong debt issues. Budget an extra amount to pay down these loans and cards and it will save you much more money in the long run than simple savings.