Take Control of Your Finances

Step 3: Create a Spending Action Plan

Suze's financial prescription for Scott and Carol begins with him admitting his spendthrift ways. "I'm impulsive," he says. "I've made those purchases when I've felt like I needed to make those purchases, and it made me feel good."

Suze says Scott and Carol can curb their spending habits by following a three-step process:   
1. Sit down with your expenses and separate wants and needs.   

2. Circle all expenses that are wants.   

3. If you have debt or no savings, eliminate the wants. "Scott thought he needed to play fantasy football," Suze says. "Guess what? He does not. That is a want."

Do you know how much is coming in—and going out—of your bank account every month? Use Suze Orman's Expense Sheet to get a real look at your budget.