"Put it on paper," Cintron advises, and adds, "The first step to creating a budget is simple: put down on paper what you are spending your money on. That sounds easy, but it takes discipline and honesty -- in other words, do not omit anything, no matter how small" (76). In fact, many of the clients who seek out Cintron's advice simply guess at how much money they are spending each month without ever committing a single item to paper. By listing all expenses, though, even the trivial ones, people can make a decision concerning how important these expenditures are to their lifestyles and eliminate those that can add up without people realizing it. For example, Cintron also notes that, "Cut unnecessary expenses. Once you see [what you are spending] in black and white, you can figure out what you can cut. I call it going on a money diet" (76). Committing these figures to paper also helps to eliminate unnecessary spending, impulse purchases, and identifying less expensive alternatives to existing buying habits in ways that can free up real dollars every month for almost anyone. Some real-world suggestions offered by the author include ensuring that video tape rentals are returned and bills are paid on time to avoid late fees, setting aside money for regular savings before paying anyone else, finding service providers such as cleaners that offer discounts and use credit cards only in emergencies (Cintron 76). Other timely steps at this time of year that can also contribute to an effective budgeting process include maximizing 401(k) contributions, ensuring withholding taxes are at appropriate levels, ensuring that all allowable deductions are taken, keeping track of business-related mileage and so forth (Cintron 76). In addition, Cintron provides some useful tips in setting...

For example, people can review their bills for the previous 6-month period and estimate average monthly expenses for these categories. Relentless record-keeping is essential thereafter to ensure that actual expenditures and income reflect accurate totals for these categories and emphasizes the need to reduce expenditures in every category possible if an individual's budget total comes up in the red. The author also notes that there are some useful computer-based applications such as Quicken or Microsoft's Money that can assist in the budget development and maintenance process. In sum, the author concludes that in the case of personal budgeting, practice makes perfect: "Budgeting requires self-control and discipline to reach your goals -- it can become a habit that will take you to greater financial security" (Cintron 76).
Conclusion

The research showed that a personal budget requires some careful thought and self-discipline to be successful, with some of the most important features being identified including the need to commit the process to paper (or a computer-based application), being honest and thorough in the budget development process, and eliminating unnecessary expenditures wherever possible. Other steps involved in developing a sound personal budget included some common sense approaches such as taking all allowable deductions on state and federal taxes, using credit cards wisely and setting aside money for savings first. In the final analysis, the importance of a personal budget to individual financial success cannot be overstated, but fortunately, it is something virtually anyone can do with a little time, effort and self-discipline.

Works Cited

Cintron, Ivan. 2000, May. "The Art…