I highly recommend that you at least do it once, so you know what are your spending habits. There are a lot of softwares (FREE) to assist. I would recommend at least trying the Excel Personal Monthly Budget.

Easy thing is to “Pay Yourself First”, put away at least 10% to 15% of your income into your 401(k) for retirement saving. After that figure out your essential versus non essential expenses. Make sure you have enough cash to cover 3 to 5 months of emergency living expenses. Allocate a portion of the remaining money to non-essential expenses (entertainment, personal expenses) and then direct the remaining to your goals. Example:

· Short Term Debt Repayment, Travel

· Medium Term: Save for the down deposit for a house, College planning

· Long Term: Retirement planning Savings, Long Term Care Insurance??