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Once you know where your money's going, you need to find better ways to direct it. That's a sort of round about way of saying you need to find ways to reduce your spending so you could use the money you free up to save or invest. To do this you will need to carefully review all your spending categories and then take an axe to each. Don't think of any category as "untouchable." You should be able to make cuts in every one of them, including even housing and transportation. You might not like to think about this but you could move to a less expensive house or apartment or sell that gas-guzzling SUV and get a used hybrid.
Be sure to also set goals
It's also important to have goals. In fact, people who try to budget without having any goals rarely succeed. When you have goals – whether short- or long-term – it’s easier to stay motivated because this will allow you to see the progress you're making towards achieving them, which can be a powerful stimulus for staying on track. For example, let's assume that one of your short-term goals is to take a cruise that will cost $3000. If you save $150 a month towards that goal, you would be able to see that you're becoming closer and closer to that dream cruise each month.