1. Here's how to start: Over the next couple of months, keep records of all your money coming in (your income) and going out (your expenses).
Certain expenses - your basic necessities - occur each month, such as rent, food, telephone, electricity and transportation. Other expenses - like vacations, entertainment and gifts - will vary.
2. With the information you've gathered from step 1, you can create a template for your budget. You can use our Monthly Budget Worksheet as a guideline and adapt it to your needs by adding or
removing items as necessary. Once your budget is set up, enter the actual expenses as they occur. Are you spending more or less than you budgeted? Take this into consideration for the next month's budget.
3. When you have a good record of where your money is going, check to see if you can fit savings into your budget. Perhaps it would help to create a savings goal - such as a new car, a down payment on a home or a vacation.
