Build a budget

You have to analyze your financial outflow (figure out where your money went!) rigorously and realistically. Retrace the source of your spending as accurately as possible and know exactly when the expense was planned. When you make a list of all your financial obligations, you will see that while some expenses occur monthly, others occur annually, like your car registration. If you don't plan for it, your budget won't work! It's all a matter of balancing your cash inflow and outflow.

Expenses are then divided into four groups:

1. Weekly expenses: groceries, pharmacy items, dry cleaning, gas, bus fare and outings.



2. Monthly expenses: mortgage or rent payments, electricity and gas, insurance, car payments, telephone, cable or Internet access payments.



3. Annual expenses: transportation (driver's license, plates, maintenance and repairs) clothing, leisure, vacation and furniture.



4. Savings and investments for special projects in the medium-term: renovations, retirement savings. Credit payments should be in this group.