Here is the formula for your use, too: 

Now that you know an enormous amount of money will pass your way, doesn't it make sense for you to create a budget that will allow you to keep and invest as much of it as possible? Below are the six steps in creating a household budget. 

SET FINANCIAL GOALS (STEP 1) Setting financial goals is the first step in creating a budget. Have you heard the old saying, "If you don't know where you want to go, you won't know how to get there"? By setting financial goals you will have a road map to guide you. If you would like to learn how to create financial goals, Click Here.

USE MONTHLY TRANSACTION RECORD SHEETS (STEP 2) A monthly transaction record sheet (MTRS) is similar to a diary. The purpose of a MTRS is to teach you how and where you spend money each month. Write down the date, the description and the amount of every transaction for three months. This includes mortgage/rent payments, food, gasoline, etc. After each transaction, indicate if you paid cash, wrote a check or used a credit card. By recording all of your transactions for three months, you will begin to uncover trends in your spending habits. For example, upon examination of your MTRS, you may learn you spend a large percentage of your income eating out at restaurants. Click Here to learn about an comprehensive book that has help thousands of people build a solid foundation under their financial future. This comprehensive book contains sample budgets and forms for you use.

USE MONTHLY CASH FLOW STATEMENTS (STEP 3) Once you have recorded three months spending history, compile the information into a cash flow statement. This will show you where your money is coming from (cash inflow) and where it is going out to (cash outflow).  

CREATE A MONTHLY BUDGET ALLOCATION (STEP 4) The next step is to create a monthly budget allocation. The purpose of a budget allocation is to capture any amount of money currently slipping through your fingers. Just because you are redirecting portions of your current income into an investment plan, it doesn't mean you and your family should not enjoy the present. You'll soon find, as many others have, that creating a budget allocation actually creates additional monthly cashflow.

USE AN ANNUAL NET WORTH STATEMENT TO MONITOR YOUR GOALS (STEP 5) Annual net worth statements are an excellent way to monitor your financial progress. Your net worth is your total assets less your total liabilities. When calculating your net worth use the current fair market value of your assets and the current outstanding balance of your liabilities. If your outstanding credit card balances are a large amount of your net worth, you have two options.

The first is to follow my Debt Reduction Strategy. Go To Debt Reduction Pyramid

The second is to consider using a professional debt assistance service. A comprehensive debt assistance program will lower your monthly payments, lower your interest rate on outstanding debt and will save you money. To learn more about comprehensive debt assistance,  Click Here.

CREATE A REWARD SYSTEM (STEP 6) Create a reward system. Planning for your financial future is supposed to be a fun process. Make it so. For example, after you and your family have reached your annual goal, enjoy a night out on the town. This helps your budgeting process to be a combination of hard work and fun. Good luck with your investing!