Starting when you're 30, save $264 a month. Invest it in a tax-deferred account like an IRA, and earn an average return of 10 percent per year. When you turn 65, voilà , you'll have a million bucks (or so).

Of course, how much that will buy when you reach retirement is another story. Assuming 3 percent inflation, it will be worth about one-third as much as it is today. I throw that in only to impress you with the fact that, while $264 is a nice starting point, you'll probably want to set aside much more.

For now, however, the question is this: Do you have an extra $264 each month? Or let me put it this way: If your family were a business, would you be showing a profit of at least $264 a month? After all the income is counted and all the bills are paid, is there money left over? There’d better be, because that monthly surplus is the key to building your financial security.

If you're not sure you even have a monthly surplus (let alone how much it is), then you've got two choices. One, you can continue your "easy come, easy go" approach, spending your money according to your moods and whims of the day. That's a fun way to go through life — until you begin drowning in a sea of debt. Meanwhile, you're robbing yourself of the opportunity to move toward financial stability and security. By the time you come to your senses, it could be too late to redeem the situation.

Or, two, you can buckle down and develop a plan to guide your spending decisions. Sure, creating and living by a budget is a hassle. But if you're tempted to skip this important step, you do so at your peril. For 99.9 percent of us, living by a budget is absolutely essential if we're to progress financially. A winning and gratifying financial strategy begins with your monthly surplus. And making sure you have a monthly surplus begins with a workable budget and — there's no sense kidding ourselves — a healthy dose of self-discipline. A good spending plan can help you:

• Apply your current income more strategically as you reduce or eliminate frivolous or irresponsible spending.

• Improve communication with your spouse as you set priorities.

• Steadily eliminate your debt.

• Raise your standard of living and equip you to withstand economic downturns.