But that is often easier said than done because you can't anticipate some expenses that may crop up unexpectedly. If you actively adhere to a budget however, these sorts of eventualities can potentially be addressed with less stress than would otherwise be the case.

	Setting goals with budget planning
	Group financial goals into three time horizons - short-term, mid-term and long-term. Ask yourself: What do I need? What do I want? Your answers to these questions will help define your goals. Once you know what you want, you can begin to budget with a purpose.

Short-term budget goals are those that you typically want to achieve over the next year. These may include paying off your credit card bills fully or saving for a vacation.

Mid-term goals are those you want to achieve over the next two to five years. For example, you may want to save for a downpayment on a new house or renovate your kitchen.

Finally, long-term goals are those that take more than five years to reach. Typically, these have to do with your retirement plans or for your children's future education.