Happy New Year and thanks for joining me on the Money Girl Podcast.

I'm Laura Adams.

Want to make this year your best money year ever?

Getting started on the right financial foot is an excellent way to make sure you get the job done.

The secret to success is a fundamental

financial rule that can give you the power to create wealth. Though this

financial rule is easy, almost 60% of American adults don't do it, and therefore they never

get ahead.

So what is it?

Some kind of secret investing tip that Wall Street insiders use?

Nope, this essential rule is simple.

Follow a spending plan, so you never spend more than you make.

Stay with me and I'll tell you how to create a realistic spending plan in six steps.

A spending plan is a proposed strategy for how to spend money before you ever receive it.

It takes into account all your living expenses,

obligations and bills, plus the money you want to put aside for short and long-term

financial goals. You identify what amount or percentage of your income to spend on

different categories, like housing, food and savings, and make sure you hit those targets every

month.

For instance, you might decide to spend 30% of your money on housing,

20% on food, and 15% for retirement.

Using a spending plan to live within your means is the holy grail of financial success

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