As you go on with your budgeting, you can add more categories. Modification is constant for spending is not only limited to your regular expenditures. Irregular expenses include travel, gifts and charity, among others. You can add them to your list whenever the need arises. As soon as you make your budget, be sure to make your budget a dynamic document for success. Investing Make an investment plan - Savings are meant to keep us warm during stormy nights; and when used wisely, savings can help us achieve financial freedom before we actually retire. Make an investment out of your savings to generate income. For first time investors, use twenty-five percent (25%) of your savings as a start up investment. Then, slowly begine to increase the amount each month. And if it is your child's education you're saving for, you'll need to be a little wiser and start a little bigger than that now: Alwayas assume that you will need to save between $115 and $284 a month. This estimate starts when your baby is born. Such plans may include a family vacation to Disney World or the construction of a new deck for the house. Once you figure out where all your money is going, you can make sure that you are not wasting. Spending smart is the key towards better finances. It's a way to set financial priorities. But before you get to setting your objectives, you need to take stock of where you're spending your money today. Some people may forget that a credit card does not do magic and a real bill comes at the end of the month - adding to your long list of financial obligations. The key is to have patience in the process of the creation and maintenance of your personal finance budgeting list. It takes time to verify information on expenditures and income so that nothing is missed. One of the very first things you can start doing is to have a habit of writing down every penny you are spending daily. A small notebook is not large enough to be uncomfortable bringing around in your bag everyday. This notebook can even be carried in your wallet or purse. Start writing down every little detail of expenditure on a daily basis.