The budget of each person varies according to their lifestyle, spending patterns, and net income. You must thoroughly examine how you spend your money before you can create a budget, which requires compiling all of your bills and pay stubs. Write down all of your monthly spending once you receive all of your bills and pay stubs. Next, make a note of your monthly income. To determine how much money you make, deduct your expenses. If the result is less than zero, you need to review your spending and saving habits because you are making more money than you are spending. A newbie can seek help with the process by using a budgeting spreadsheet, calculator, or other tools.
LEARN MORE: Budgeting 101