Most individuals do not master the management of their personal finances. However, management is an easy task, usually reserved for certain people who have experience managing their finances. On the other hand, others find it intimidating due to lack of knowledge. Because the economy has transformed dramatically since the 1980s, the cost of living, insurance rates, and interest rates on student loans have all increased, while health care has doubled, Managing your money well has become more difficult. It is therefore imperative to acquire the skills necessary to manage your personal finances. Through budgeting, saving and the advice of a financial planner will ensure any individual's financial success and stability. As an accountant, I know that the key to taking control of your personal finances requires setting up a realistic budget. A budget has several important steps. First, total up all sources of monthly income; Second, prioritize expenses from most important to least important, mortgage, loans/cost, auto, utilities down to cell phone and cable expenses. Finally, measure monthly income against total expenses. If monthly expenses are higher than income received, this means living beyond one's means. Most people should understand that "setting a budget, whether through a formal or informal plan, is a first step in deciding what needs and wants need to be met and what resources are available" (Brown, 2007, p.316). After all, achieving financial stability also gives the opportunity to control savings. However, creating a budget is only the beginning of structuring finances. In order to stick to a budget, you have to stay focused on your needs rather than your wants. This focus is often extremely difficult to acquire or maintain. Bad spending habits over long periods of time sometimes make controlling finances difficult. Compulsive buying, obsessive credit card shopping, and overspending are all bad spending habits. On the other hand, learning from experience, good or bad, can be the best teacher. In my mind, the triggers for bad spending habits are also due to easy access to cash, credit card misuse, and compulsive buying. First, a person must identify what is influencing their bad spending habits. Next, analyze ways to correct the problem. Finally, make a plan to avoid overspending. Recognizing how easily financial mistakes were made will help provide a better understanding of how to avoid monetary miscalculations in the future. Most consumers have a savings account for emergencies, such as unexpected medical bills, a change in residency, or a pay cut..