What is the first step to get spending under control?

Creating a budget of current income and expenses is foundational to gaining control over spending. A budget provides a clear picture of how much money is coming in versus how much is going out. By laying out all sources of income alongside all fixed and variable expenses, individuals can identify areas where they may be overspending and make informed financial decisions moving forward.

This first step aids in establishing financial awareness, which is crucial for implementing effective spending habits. Once a budget is in place, it becomes easier to set financial goals, prioritize necessary expenses, and plan for discretionary spending. Understanding one’s financial situation is essential before considering strategies like cutting discretionary expenses, eliminating credit use, or increasing income, all of which benefit from having a solid budgeting foundation.