by Georgia Wright 

Like a diet,  a budget works only if you make a long-term commitment to it. Unfortunately, human nature makes many of us frustrated when we can't immediately have the things we need or want. As a result, budgeting plans can become ineffective. That's why adopting a "pay yourself first" attitude can have a positive impact on long-term budgeting, spending, and investing.

Follow these simple steps to take control now and to pave the way for a bright future:

1) Take a close look at what you spend. Begin the process by recording all your expenses, listing living expenses such as rent or mortgage and utilities; services such as childcare; and necessities such as food, clothing, medical expenses, etc.

2) Include your "investments and savings" with expenses. If you treat investments and savings as an expense that must be made weekly or monthly, you will be much more inclined to set the money aside.

3) Allocate income in terms of percentages. The idea here is that there are a number of expenses that can be trimmed a small percentage at a time. Determine what percentage of your income goes to each expense, and then categorize them as either fixed or flexible. You have discretion over the latter, but not the former. It is generally the flexible expenses that erode earnings.

4) Prioritize. Examine your list and rank your expenses as important, moderately important, or unimportant. Eliminate the unimportant items. This action in itself may be enough to begin a modest investment and savings program. If it isn't, eliminate some of the moderately important expenditures, and then pay yourself first. Here's what's important: Don't merely eliminate the amount of the moderately important item; instead, write a check for that amount to yourself and deposit it in a special savings account.

5) Compromise on expenses. It is natural for couples to disagree on budget choices, especially in two-paycheck families. Ideally, you must compromise and negotiate until you sort out the most appropriate and important expenses.

6) Where your money goes depends on how much you have. If you begin with a savings of $200, you might put it into a savings account or money market fund. If you are retirement-minded, and you qualify, you can contribute up to $2,000 a year on a pre-tax basis into an Individual Retirement Account (IRA). Better yet, in some circumstances you can make even greater pre-tax contributions to an employer-sponsored retirement plan, for example a 401(k). All earnings in these retirement savings vehicles generally accumulate on a tax-deferred basis.

Putting yourself first makes your financial future and well-being your biggest priority. Sure, it may be necessary to forgo purchasing some enjoyable, yet unneeded items; however, the dividends that a disciplined savings program can ultimately pay you will certainly outweigh a strategy of overspending. Putting yourself first means solidifying your future.

Georgia Wright is a registered representative of and offers securities through MML Investors Services Inc. She can be reached at 860-678-2924.