Since the coffeemaker is a one-time expense, let's take it out of the ongoing cost. Over the course of the year, you would now be spending approximately $228, a savings of $204. You could still afford to stop by your favorite coffee shop for the $1.80 large cup once or twice a week, depending on how much you want to save overall. More important, you were able to contribute to your financial well being without seriously compromising your lifestyle, giving you a better opportunity for a healthy financial future.

1. Coffeemaker: (one-time cost) $ 50.00      
2. Coffee Beans: (each month) $ 10.00 (yearly) $ 120.00
3. Coffee filters: (twice a year) $ 3.00 (yearly) $ 6.00
4. Cream: (each week) $ 1.50 (yearly) $ 78.00
5. Sugar: (each month) $ 2.00 (yearly) $ 24.00
Totals:       $ 228.00
Savings Per Year:       $ 204.00

In today's changing economic climate, establishing a financial plan is very important in building a strong financial future. The best way to establish your plan is to create a budget. It is the only way to get a grip on your spending and see if your money is being used in the way that will benefit you most. The process actually involves creating several budgets: an Initial Budget to determine the current state of your finances; an Adjusted Budget to show the changes you've implemented and the effect they've had on your financial status; and finally, you'll create any number of additional adjusted budgets to deal with changing circumstances throughout your life. There are several steps to creating an Initial Budget. Let's begin.