With the rising cost of everything and the across the board cuts in pay, it is easy to get discouraged when it comes to your money. Gas prices are so high that people are staying home more just to avoid the drive. Big companies are slashing their wages paving the way for other smaller companies to do the same.

Although you cannot control those factors, you can take control of your finances. You need a financial plan..

A financial plan can take the form of a budget which dictates how much you have to spend on what, as well as a savings plan for future income. With this budge you allocate future income to all your expenses, such as house payment, utilities, childcare, etc.

You should also include recreational activities such as eating out and movie rentals. Most people would be shocked if they tracked every dollar they spent and learned where the bulk of their money was going. It's not usually the dreaded mortgage, but nickel and dime expenses that add up like the gourmet coffee shop or eating out at lunch every day..

A financial plan can also take the form of an investment plan. In this case your savings will be allocated to assets which are expected to generate income in the future. Some examples would be a new business, real estate, or shares of an existing business.

The financial plan will not necessarily make you more money but you may find that by minding where your money goes, you have more left to comfortably pay your bills and add to your savings account, and the peace of mind that comes with having your finances under control will add quality to your life..

Finance : Financial planning