What comes to your mind when you say the word budget? Do you see cheap motels, no eating out, and other unpleasant restrictions? Often the word budget leaves a negative impression. But try thinking of a budget more as a spending plan. A spending plan is a very positive concept and a powerful tool.

A spending plan allows you to prepare, so you can enjoy the things you want while staying within your means. So when you spend money going to the movies, or on a date, you know you won’t be spending more than you should – which is liberating instead of restrictive.

People who are in control of their finances are people who can account for their money. They plan ahead for needed cash and reserve money for planned and unplanned expenses. The sad truth is that most families live paycheck to paycheck with no spending plan, no monthly accountability, no savings plan, and no idea of how or when they are going to get out of debt.

Until your plans and goals are expressed in a written spending plan and your monthly income and expenditures are accurately recorded, you will be unlikely to achieve your financial goals. The longer you procrastinate developing a practical, working spending plan, the longer you deny yourself the peace of mind that comes with being in control of your finances.

A good spending plan depends on thorough planning and understanding your individual needs. Start by evaluating your personal and family financial records so you know how much you have been spending and where you have been spending it. Determine your total income and total expenses. If your income exceeds your expenses, great – but you can still improve your financial stability and reduce debt quickly through an effective spending plan.

If your expenses exceed your income, you can develop a spending plan that will separate “wants” from “needs.” You will need to develop good money management habits by planning and putting forth a great deal of effort, but in the end you’ll be on the path to financial freedom.

You can find more detailed information on developing a spending plan and many other topics through the 9Steps2Wealth System.

Just four years ago, only four states gave consumers the right to freeze their credit files. Today, 35 states allow credit freezes, and 8 allow them for victims of identify theft.

A “security freeze” means your credit file cannot be shared with potential creditors and no one can open any form of credit in your name. But that doesn’t mean you won’t be able to get credit for yourself. You can lift the freeze when necessary using a personal identification number.

So if your credit files are frozen, even someone who has your name, birthday and Social Security number should not be able to get credit in your name. In exchange for this added security, it will take slightly longer to get your own new credit approvals.

One step down from a credit freeze is a “fraud alert.” Residents of any state can ask the three major credit reporting agencies to place a fraud alert on their credit reports, which is supposed to alert you and ask your permission when someone applies for credit in your name. Creditors, however, aren’t required to abide by or even check the alert.

Using credit freezes or fraud alerts are a matter of personal choice, but keep them in mind as an option if you would like to protect your private information and guard against credit theft.

Click here to find out your state’s policy on credit freezes and how to get a freeze initiated.

Financial Freedom can help you gain control of your credit through the Credit File Correction Kit.