7 rules self-made millionaires live by

1. Treat money as something to save and invest. The minute you receive your paycheck or a windfall (example, an inheritance or a bonus), think of how much you can put away as savings.
2. Assume some risk when investing. When you play safe in investing, you’ll get safe (but low) returns as well. Millionaires have gone out on a limb putting up businesses which they hoped would earn — nothing is guaranteed. But it is in taking calculated risks that they are rewarded.
3. Live simply. Some millionaires have lived in the same homes they have had for the past 30-40 years. Or they live in the homes they inherited. You can also take a cue from the way millionaires live: not all party every night, nor do they buy every new car model that’s released. Instead, you’ll find these millionaires working at their desks at 8 a.m. and having just two cars in the garage.
4. Have a goal. By being specific, you will be more motivated to reach your goal. For instance, make it your goal to have your own home by the time you are 35 or 40. It may be a studio condo unit or a three-bedroom home in a subdivision—it will depend on your income and how you save over the years. Having a goal will help you focus your efforts well.
5. Choose good debt over bad debt. Take out a loan only when the loan proceeds will be used to earn you more money. For instance, apply for a bank loan to expand a business that’s feasible.
6. Share your blessings. There seems to be a unique mathematical formula at work: The more you give, the more you are blessed back in return.
7. Train children to handle money well.

There is nothing on the list that says it will be easy. But it has been done. There are more millionaires around us than we think, and interestingly enough they are the ones who have simple clothes, eat in simple places and drive cars that are not flashy.

How to build your first budget

Why you should care about budgets

Putting together a post-college budget is crucial if you don't want to spend your way into serious problems. You're also developing a habit that can serve you well throughout your life."You're committing to managing your money instead of letting your money manage you. You'll probably find it helpful to first track how you're spending money now. Review one of your recent bank statements to get an idea of your current monthly expenses and your monthly take-home pay. Then track every dime you spend for the next three or four days to learn where your discretionary money goes.

OK, now what?

What your budget looks like will depend on many factors, including what area of the country you live in. People in urban areas tend to spend more on housing than their country cousins, for example, while utility costs will be higher in the Northeast and Midwest than in balmy California.

The simplest way to budget may well be "The 60% Solution." The basic idea is that all your "essential" spending -- taxes, food, shelter, clothing and the rest -- comes out of the first 60% of your total, pretax income. The rest, in 10% chunks, is devoted to retirement savings, emergency savings (or debt repayment), short-term savings for irregular expenses (like holidays and car repairs), and fun money.

What if the numbers don't add up?

If you've done and redone your budget and you're still spending more than you make, then it's time for some radical rethinking. Here are the most likely culprits:

Housing: You'll notice this is the single biggest expense you face, so some cuts here can really make a difference. Consider getting another roommate, renting a room from a family member or even moving back with your own dear parents if you can't get this expense in line.

Transportation: If you have a car loan, you may have already busted the bank in this category.

Food: Basic groceries should cost a single person about $150 a month. You'll spend a lot more if you eat out frequently, however, or if you buy lots of processed foods, frozen dinners and gourmet stuff. Cut your food costs by bringing lunches and snacks from home.

Utilities: A cell phone, a big long-distance bill or a need to walk around your apartment in shorts in January can all put you over budget in this category. Shop around for cheaper long distance.

Personal: Let me guess. You're waaaaaay over budget in this category. The good news is that just about everything in this group represents a want, rather than a need. That means you can easily trim out the fat: Disconnect your cable or at least switch to basic; ditch the gym; find a cheaper haircut; carry (and spend) less cash and stop smoking.

• Savings: You might have to temporarily trim this percentage to pay off credit card debt. But don't cut savings to spend on anything else. And make sure, if you're eligible for a 401(k), that you contribute as much as you can -- at least enough to get the full company match.
  
• Debt: If you're like the average college graduate, you've got about $20,000 in student loans and $2,000 in credit card balances before you even get your first paycheck. Just making the minimum payments in this category can put you over budget.