Some expenses are for needs. They may be fixed, like rent or insurance, or variable, like food and transportation.

Other expenses are for wants, like buying a new CD or concert tickets. While wants are important, and they’re often fun to have, you may have to limit or postpone them to pay for your needs. You’ll probably enjoy your wants even more knowing you can really afford them.

If you have a bank account, your monthly statements are also a good way to track how much you’re spending now.