Imagine if governments spent as they wished, failing to budget and spending until there was nothing left. The reality is that many Americans live in just this way, spending haphazardly until the money runs out and then using credit to get by.

Many people have no idea how much they earn, where the money goes, or if they have enough to get by this month or the next. The result is disaster waiting to happen.

Nowadays, endless credit, credit cards and debit cards make it easy to overspend. People have their paychecks directly deposited in their bank accounts, have their bills automatically withdrawn and use a card to pay for purchases. The result is a society that rarely holds cold hard cash in their hands and is unable to make the connection between the many hours they work and the things they buy.

Cards – both debit and credit – make it difficult to resist the urge to spend. Everywhere you look, there are things to buy, places to visit and experiences to be had, all available on credit, regardless of your ability to pay.

The only way to resist this incredibly strong pull is to plan for success by creating a no-fail environment where you plan, and are responsible for, your expenditures and purchases.

Start by creating a budget. A budget is a plan that limits the amount you will spend each month and breaks that spending down into categories such as housing, food and utilities. The plan should be a comprehensive one, taking into account the amount of money earned each month versus the amount being spent and saved. It should include extras such as retirement savings, an emergency fund and debt repayment.

Many people find themselves shocked at how much they spend each month on necessities like housing, food and utilities. Others quickly realize that their income does not support their spending. What a budget does is put you back in control. It provides you with the information you need to plan, make changes and take control of your money and your future.

Creating a budget is just the first step on the road to financial freedom. To be successful you must stick with it. Don’t be discouraged if you stumble a few times. Simply learn from your mistake and continue, following your budget.