Your younger sister tells you that she now has a job that pays US$1,300 per month (after tax); however, she is spending US$1,700 per month and taking on more credit card debt to meet her monthly bills. In conversation she says, "I love to spend money on a lot of fun things and eating out is a necessity since I have such a hectic life. I need money for the things I want to do." She ends the conversation by saying, "My financial planner and my tax man are always telling me that I need to prepare a budget, but I'm pretty sure I can be alright without one."

Compose an e-mail to send to your sister explaining some of the personal financial management techniques that she can use to better balance her income with her expenditures and become better able to manage her financial affairs.