Simply put, a budget is a plan for your money. It is much different than a cash flow plan. A budget is the plan, the cash flow plan is what actually happened.  Planning and monitoring your budget will help you identify wasteful spending, adjust quickly as your financial situation changes, and achieve your financial goals.  When you  see the breakdown of your expenses, you may be surprised by what you find; this process is essential to fully grasping how things can add up.  Creating a budget will decrease your stress levels because, with a budget, there are no surprises.  Unexpected car problems or medical bills?  That dream vacation your best friends are planning?  With a budget, you don’t have to panic or wonder if you have the money—you already know.  This sense of financial clarity is important not only in college, but throughout life.

Paying your bills on time is a must. This means you have to prioritize and take care of what really matters the most. Your giving should come first, then your savings, needs, and wants if your budget allows.

Saving money, improving your financial life, building wealth. It all starts when you set money goals and make a plan to reach them. So what are your goals? Set up an emergency cash fund? Get out of debt? Make a down payment on a car or home? Sock away money for college or retirement?

Getting out of debt is essential to your road to wealth. With strategic planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth.