I remember taking my lunch to the office for 60 days so I could afford my first trip to the islands. I was determined not to withdraw funds from my account to take this trip, so I cut my expenses. It sounds simple enough, but there were some steps involved.

Everyone has heard about keeping a budget. Today, it 's a lot easier to track spending because computers and smart phone programs have simplified the process. I track my expenses on my smart phone. The first step to budgeting is being aware and tracking what you do with your cash.  I helped a group of college graduates track their expenses, and they were shocked at the amount of cash spent after paying their monthly expenses. They realized that far too much of their cash was spent and they were unsure on what. 

At the same time, some expressed concern that they really did not want to turn into “accountants” by tracking all spending. My solution was that they go on a financial diet.  Spend some cash without tracking it, but limit the amount. For example, you can spend $5.00 a day or a total of $150 a month on items not on your budget without tracking them. List this amount on your monthly budget as "other." Looking at monthly spending habits can lead to changes in the way you handle your cash and ultimately the amount of cash you have to spend or save.

Step two is determining what to do after you learn your spending habits. Establishing limits on some things and eliminating others, might be an option. If not, look at ways to increase your income. Turn a hobby into a business, or seek a part-time second job to cover expenses. Set some budgeting goals. Try to save $50.00 a week for 60 days ($50.00 a week X 8 weeks = $400.00 or $200 a month for two months). Your ability to save and manage cash will surprise you.

Step three, work to control your spending.  Ask yourself, what can I change? Tell yourself NO, before you buy.  Set in place spending wait times. For example, if you want to buy something over $100 dollars, wait 48 hours. During that time think about if it is really needed. What I have realized about waiting 48 hours is that I could survive without the item. You might miss that sale, but knowing that you have enough cash for special events, emergencies, and to pay what you owe means you can go out to lunch.