The first crucial step in creating a household budget that works is to list all of your income and keep track of every dime you spend for a month. Before you can know where you're going, you have to know your starting point.

• You'll be surprised to learn where your money goes each month. This awareness alone may change your spending habits for the better.

How much money do you bring in? How much do you spend? On what, specifically?

In college, using credit cards can seem like no big deal. Credit card issuers often give special deals and incentives to lure college students into applying for credit they don't need. With large spending limits and small incomes, credit cards tempted you to live a lifestyle you can't afford.

• Credit, used properly, can provide convenience and peace of mind in knowing that you're covered in the case of an emergency. But the temptation is great to live outside of your means and worry about paying for those purchases later. The fewer credit cards you sign up for, the less you'll be tempted to spend away your future financial health.

How often do you use credit cards?

One of the simplest and most productive habits you can incorporate into your personal financial success plan is to maintain a balanced checkbook. Keep track of everything that goes in and out of your account by writing it in your check register or in a spreadsheet. At the end of the month, compare your checkbook to your bank statement.

• When you're keeping track of what you spend, you may feel less tempted to waste money on impulse purchases. You'll always know when the money is almost out. This can save you a lot of money on overdraft fees and a lot of headaches.

When was the last time you balanced your checkbook?

There's no secret to a successful budget. It's as simple as keeping track of your income and expenses, increasing your income or lowering your expenses until you spend less than you earn, while also saving for a rainy day.

• Once you have a good grasp on what you're spending and where, find places to cut back and put the money you save into a savings account for a rainy day. Clip coupons and look for grocery sales. Turn off the lights when you leave the room. Turn the air conditioner off when you leave the house. And cook ahead of time to save on the expense of eating out.

What wasteful expenses can you reduce or eliminate altogether?