There's no denying it: today's economy is hard. Being strapped for money is nothing new, but needing money and doing something about getting money are two different things.

In order to get out of debt you will need to create a budget and stick with it. In this hub I'll focus on ways to create and stick with a solid budget that will help you get out of debt.

A budget is a vital part of getting out of debt and creating wealth for yourself. Before you can create a budget, you need to first determine your current budget (what I call your money flow).

Don't have a budget? Actually, even if you haven't been following a set budget, you have still been spending money, paying bills and (hopefully) saving and investing. Begin by figuring out (and writing down) the following:

• Your monthly income
• Your fixed expenses (mortgage/rent, phone bills, power bills, car payments, etc).
• Other expenses (car repairs, house repairs, eating out, groceries, etc.)

The goal at this stage is to determine what money has been coming in and what money has been going out. This is the easy part.

After you have outlined your money flow, you have to decide what goals you want to achieve. Here are some sample goals to give you ideas for your budget:

• Save $30,000 in the next three years for that new vehicle
  
• Get the minimum balance of your primary savings account above $10,000 by the end of this year
  
• Invest $20,000 in a retirement account before retiring in five years
  
• Pay $300 a month into a separate account for the next twenty years to pay for daughter's wedding or child's college education.
  
• Set aside $2,000 in the next six months to invest in home improvements

Notice how all of these goals are specific and achievable.

Determine what your financial goals will be and then set forth on a plan to achieve those goals.

At this point you have an understanding of your money flow (what you're earning and where it's going) and your money goals.

Now comes the hard part.

Figure out what expenses need to be cut in order to meet those goals. Companies do it all the time- they create budget cuts in order to meet their financial goals. You should do the same thing in your personal finances.

Go down your list of "other expenses" and figure out which ones are necessary and which you can do without.

Do you really need to eat out for lunch every day of the week or could you survive packing your lunch a few days? Is a particular hobby of yours eating away at most of your income? Can you do without that extra family vacation this year?

Whatever expenses you have to cut, do it! Remember, your goal is to get out of debt, so be honest with yourself and cut unnecessary expenses. Believe me, you won't regret it in the long run.