6. Monitor your inflows and outflows.

Closely track your expenses to prevent spending leakages (unaccounted dollars spent). If your cash purchases represent more than 5 percent of your budget, start collecting receipts so you can recall what you pur- chased and can realign your budget accordingly.

7. Reevaluate and review your budget often.

Budgets aren't chiseled in stone, but as long as they're working, more power to you. However, you'll always run into a reason to make an adjustment. Your reasons for budgeting may change over time: new car, kids' education, retirement.

You may find these two online budget worksheets helpful: About.com's Budget Worksheet (www·financialplan·about·com/ library/blbudget·htm) uses preselected categories for budgeted amounts, actual amounts, and the differences. About.com also provides a budget worksheet for college students that's set up the same way.

Fidelity Investments (http://personal·fidelity·com/planning/ investment/content/budgetwork·html) provides an annual per- sonal budget. For your convenience, the Fidelity budget worksheet is printable. Deduct your outflows (your core and everyday expenses) from your inflows (your regular income). The difference is your personal net cash flow.

Whenever the number is positive (everyone hopes it is), you have money to save or invest. Your savings can help you reach important financial goals, such as a down payment on a house, paying off debt, and enjoying a financially comfortable retirement. Inflows ­ Outflows = Net Cash Flow

Whenever the difference between your income and expenses is a negative number, you're going into debt. Overall, a negative number indicates that you need to increase your income and/or analyze your expenses to see how you can reduce them.