Is your New Year’s resolution to finally gain control over your money? You’re not alone. A recent Nielsen survey revealed that one in four Americans has resolved to spend less and save more this year.

We spoke to local families who agreed that there really is only one way to reclaim control over your money: Track your spending and start setting a budget each month. “To me, setting a budget means spending less than I make,” said Michael Khater of Palmerton.

“It means looking at my expenses and my income, and balancing the books every month. Numbers don’t lie. It works. It puts things into perspective and helps me set priorities.”

Getting started

Seven years ago, Dave and Dawn Fisher of Lehighton took an honest look at their money. They were playing games with their credit cards, transferring balances between zero percent interest accounts and continuing to add to their debt, building up tens of thousands of dollars in credit card debt.

Their first step toward building a budget was to write down all that they owed: Credit card debt, auto loans and more. They also compared their income and current spending levels. If they spent money on it — food, clothing, gas, the mortgage and insurance and taxes — they tracked it.

“That really was an eye-opening moment. I knew that we couldn’t live like this anymore,” said Dave. “We were earning all of this money, but where did it go?”

He soon stumbled upon finance author Dave Ramsey, who also offers a nine-week course called “Financial Peace University.” Fisher read his first Ramsey book in two days, then began the course as well. He was so excited that he finished the course in just two weeks — and later hosted the course multiple times through his church and in the community.

The Fishers began writing down their income and every expense on paper, carefully tracking money throughout the month. It was tedious but eye-opening, they said. Every extra dollar went toward paying down debt. (Ramsey’s books advocate paying off all debt first, then building an emergency fund and investing for retirement and college, in that order.)

While the Fishers first used a pen and paper to create their monthly budget, today they use software and an app on their cellphones. (They use YNAB, which stands for “You Need a Budget,” but there are many different programs available, either free or for a small annual fee.)

They even track and budget for larger, less frequent expenses like car repairs, home maintenance and Christmas and birthdays, saving a little bit each month to ensure the money is there when they need to spend it.

Khater prefers to use an Excel spreadsheet each month. He uses the previous month’s budget to set constant expenses, like the mortgage and groceries and car payments.

The remainder of his income gets divided up based on that month’s priorities. If the car needs an oil change that month, he sets aside money for that. If they have a home repair or want to buy new furniture, this also goes on the list.

Then the family’s wants and needs are sorted by priorities. If they have extra money or don’t spend as much as expected on the important things, they have more money left to spend on the fun things, like saving for a pool table.

“With a family of five, and my wife having a young child at home and not working, it’s become more important than ever to prioritize,” he said. “I always take a look at what needs to be accomplished that month.”

Making it work

Both families agreed that budgeting itself isn’t difficult. It’s simple addition and subtraction. But what happens when there isn’t enough money to meet every want and need?

When Khater began budgeting nearly a decade ago, he was surprised to see how much money was going toward unplanned work expenses, like entertaining clients or meals away from home.

“A lot of things popped up that were ‘unbudgeted expenses,’ that I didn’t take into account. I began tracking all of the expenses that I have, and making sure that I stayed on top of things. Sometimes I need to slash things that might be less of a priority that month, so that I can meet my demands.”

When you first start budgeting, it can take some time and trial and error to find the right balance of saving, spending and earning.

When hosting financial workshops, the Fishers often tell people that the first 90 days will be a make-or-break time for creating a new financial lifestyle.

Spend some time understanding where your money is going, then be honest about what you can change. It might mean getting a second job, cutting up credit cards so you don’t accrue more debt, or cutting back on the small expenses like daily coffee or lunch out that can add up over the month.

Back when the Fishers were faced with huge amounts of debt, Dave and Dawn looked for opportunities to make more money, whether that meant selling things they didn’t use or requesting a raise and overtime. Dave even volunteered to be sent overseas through his work at the Army Depot — saving all of the money earned to pay toward debt.

They also started looking for small ways to save or earn money: Selling some household items that they weren’t using and switching cellphone plans to save nearly $80 every month.

While they cut back on eating out at first, now they look for coupons or Groupon offers before going to a restaurant.

“There are ways to save money that don’t cause a lot of pain,” said Dawn. “We’re still going to eat at a certain restaurant, but maybe we can find a coupon that will make the meal cost less. You can budget and still have a great life, and still have fun.”

She noted that flexibility is also important. Their family spent more than normal on food and eating out during the holidays. This month, they’re focusing on returning to normal and reconciling their budget to make up for overspending.

“It’s hard to believe that it’s been eight years, and how drastically things have changed,” said Dave. “They make it so easy to get in debt, and so hard to get out of it. But it gives you freedom and options.”

“People work so hard. They spend so much time at work. They should work just as hard at making their money work for them,” he added.

“Start today. Don’t start tomorrow, because tomorrow never comes. But if you’re going to commit and do this, it will change your life.”