Many people believe that being on a budget means not being able to have the things they want. In fact, the opposite is true. Staying on a budget enables you to preserve your lifestyle while you're paying off debt and saving for the future.

Who should be on a budget?
Almost everyone needs to be on some sort of budget. Relatively few people have the resources to ignore their monthly expenses and income altogether. Some of us have balanced spending habits and get along perfectly well without a formal budget. For others, a formal, month-to-month spending plan is an absolute necessity.

Quick Quiz Do I need to be on a budget?
To find the answer, ask yourself:

• Do I routinely spend more than I earn?
• Do I live "from paycheck to paycheck"?
• Am I forced to make day-to-day purchases on credit?
• Am I only able to make the minimum payments on my monthly credit cards?
• If I lost my job or had a medical emergency, would I have a hard time paying next month's bills?

If you answered "yes" even once, you may want to establish a budget for yourself and your family.