The first step in building a spending plan is to list your financial goals. Think about what you want now and in the future. You can set a short-term goal, such as buying a bike for your daughter on her sixth birthday, and a longer-term goal, such as saving up for a down payment on a house. It may be difficult to know what you really need until you record your spending.
Next, you should determine your goals. You can make a short-term goal that you can reach in a year, or a long-term goal, which requires more than a year to achieve. To determine the amount of money you need, add up your expenses by the date of each goal, and you will have a good idea of what you need to do with your money. Remember, your spending plan is a living document, and it should be modified accordingly.
Once you have a spending plan in place, the next step is to start tracking your monthly expenses. Write down the items you spend money on each week. This includes things like checking your bank account, paying bills, and any other expenditures. Once you have your expenses listed, compare them to your planned expenditures to see what you actually spent. You can also make changes if you feel that your priorities are changing, and this will allow you to make the necessary adjustments.