If you don't have the savings you need for retirement, then you've got to buckle down and save fast. If you need to live on less, then a budget will help you do it. This article gets you going on creating a budget designed for you.

*What will a budget do for me?

A budget allows you to:

* pay yourself first - i.e. put a set amount of your monthly income directly into savings.

* know where your money is going

* find where you can reduce spending

* free yourself from overspending and being left with nothing

* get out of debt

* create emergency funds and savings for future use, and

* take control of your finances rather than being befuddled and burdened by them

That sounds pretty good. So let's find out how to create a budget just for you.

*How do I create a budget for me?

Creating a budget takes a little effort, but pays off a lot for that effort. Here are the steps for creating a budget for you in about a month's time:

1. Commit to reducing your expenses and saving more

2. Write down your monthly income from all sources

3. Write down everything you spend for a month - so you know where your money is going

4. Determine where you can cut back on spending - in one of the three ways (below)

5. Assign an amount of your income to cover your new 'reduced' monthly expenses

6. Put the excess income into savings as soon as you can - first for an emergency fund and then to grow savings for yourself

7. Plan for your future savings and keep an eye out how to keep expenses down

Let's comment on each step:

*Your mental commitment

Most importantly, you must recognize that you need more savings than you have now or simply must lower your expenses.

Because most of your expenses and income show up at least once per month, I've suggested you spend a month creating your budget. You can refine it as the year goes on. Car and house insurance, heating and taxes show up less frequently so build those into a monthly expense too.

Remember those birthday, Christmas or Chanuka gifts and don't forget your entertainment and vacation expenses. Estimate them for now.

*Monthly income total:

Your monthly income from all your sources is what restricts your spending - and savings. Know just how much you receive.

*Monthly expense list:

Write down everything you spend during the month. You can sort out a category to assign for each type of spending as you go along. Your job is to find out where and how much you spend on everything you buy - the more detail the better.

*Reduced spending analysis - and application:

A detailed expense list shows you where your money is going and how much. With this you can pair down your expenses by one of three ways:

1. Finding an inexpensive alternative for the same product or service

2. Eliminate unnecessary expenses - like smoking or creating debt

3. Finding how to live at a lower cost of living.

Begin by seeing where you can reduce any of your discretionary spending - like eating out or subscriptions. You're not so much giving up what you like as finding a cheaper approach or satisfying alternative.

Distinguish between expenses that are "wants" (e.g., designer shoes) and expenses that are "needs" (e.g. groceries).

Reducing expenses is an ongoing process. You get better at it as time goes on - and your effort at doing so is rewarded.

Set about reducing any debt you have. Debt interest really adds up - an unnecessary drain on your income.

*Create an emergency fund and a monthly savings amount:

By subtracting your reduced monthly expenses from your monthly income, you can see what you can save. Pay yourself this 'savings' each month with your income.

But build up an emergency fund equal to a few months' expenses as protection against car breakdowns or other unexpected expenses. That'll save you future expenses and allow you to keep what you save working for you in investments.

*Plan, save and enjoy:

As time goes on you can find more and better ways to reduce expenses for more savings or just to free up income to do what you want if you're retired.

Recognize that every $10 per week you save gives you $520 per year and eventually $3,200 if invested at 7% in only 5 years. How many $10 weekly savings can you find?