Most people have only a vague idea of where their money goes, but they generally find that it doesn't go as far as they think it should. The solution is creating and maintaining a budget, an itemised description of income and expenses. This will enable you to determine how you spend your money, get more out of the money you have, and make it easier to meet the financial goals you've set for yourself. As with just about anything, the more closely you examine your situation, the easier it will be to identify ways to improve it. While you might not consider it the most enjoyable activity, it's a necessary in your pursuit of financial success.

There are 7 reasonably simple steps involved in putting together a budget:

• Choose a system.
• Determine your income.
• Determine your expenses.
• Compare income and expenses.
• Determine your goals.
• Improve your situation.
• Monitor your progress.

The fact is that, there are only two types of money problems, not enough and too much. Let us take a look at the first one of these two concerns, not enough. If you are in this category then you represent the majority of Australians - 99% of us, please understand that the other 1% can not be ignored, in fact the 1% are what the other 99% should be learning from. There are budgeting tips that the affluent use that the rest of the population aren't aware of.

Here are just a few of them

• Pay yourself first.
• Never lend money to relatives or friends.
• If it isn't broke don't replace it.
• Cheap normally means cheap, I'll have to replace it sooner.
• If it's on sale today, I'll get it for the same price tomorrow.
• If you can't afford it today, don't buy it today.
• If it sounds too good to be true it probably is.
• If you can't afford good financial advice you probably need it.
• An investment in your education is an investment for life.
• Never borrow for depreciating assets, unless it produces an income.
• There is a difference between good debt and bad debt.
• Live within your means.
• Create a passive income.
• Have written goals.
• Work within your budget.
• Save your pennies and the pounds will look after themselves.
• You don't have to be right to be rich.