It is very important to have a family budget if you have not done this already. I was talking to one of my clients, a young husband and wife with no kids, who were making the average median income but was not saving any of it. Their average income for a family of two was $45,000 yearly, yet they had no savings. They had no credit cards, no car payments and about to have one mortgage note. I know this may seem far fetch but it is the truth. They ignored the importance of writing it all down. Trust me when I say that setting up a family budget would be one of the wisest things you can do to make you alert of your spending habits.

In addition, it is also important to pay yourself first. This principle is a proven strategy of wealth building. Just think of it as a bill you have to pay each month. When you treat your savings with the same integrity as you do your creditors, you begin to create financial wealth. By practicing this principle, it becomes mandatory instead of optional. This means that you should deduct between 5% and 15% of your paycheck as savings. This should be considered your top priority as your financial future is just as important as your creditors. Just imagine if my clients where doing this monthly, they would have save from their salary of $3750 x.15 =$562 monthly x12=$6750 yearly x 5 years, the outcome $33,750. The earlier you start in life the more secure your financial future.

Only after paying yourself first should you pay your monthly bills. This ensures you save every month. Again, by paying yourself first you build your wealth. For example, if you paid yourself only $200.00 per month, through the power of compound interest you could retire in 30 years with $215,000.

With job industry on the decline and more and more people losing their jobs, if you are not practicing this "must do" I suggest you start now.