If you wonder where your money is evaporating, then most probably you are failing to maintain a strict budget. Having a budget is very important to keep track of your money. Once you know where you are spending your money and how much, you can make necessary adjustments and manage your finances better. Ideally, at the end of every month, you should have a surplus which you invest. Without a budget, it is difficult to create such a surplus and stick to it. Living beyond one’s means can lead to financial disaster.