Let us let you in on a little secret... The key to a successful working budget is spending less than you earn. That's it. (Just call us masters of the obvious.) And yet, for the first time since the Great Depression, Americans as a whole officially spend more than they earn. (2006 Personal Savings Fall to 74-Yr. Low)

It's a frightening — but reversible — trend.

Putting together a simple budget combined with diligent expense tracking will show you exactly where your money is going.  Here's how:

1. Identify your net income or take-home monthly income.

2. Calculate your fixed expenses, such as car payments and rent.

3. Calculate your flexible expenses, using figures you gathered from a typical month, such as your phone bill or electricity bill.

4. Now, enter your discretionary expenses, such as clothing and entertainment.

5. Finally, enter the amount you put into savings. This is also a discretionary expense.

6. Now total all of your expenses and your savings and subtract this total from your net income. If you have money left over, you may want to use it to increase your savings.

Once you've established your budget, you'll be on your way to financial freedom!