Now that you have created your budget, make sure to follow through with it each month. It will get easier over time.
Choose a format.
There are many different budget formats. Using a budget worksheet is a great way to get started. They provide pre-filled expenses, but also allow for you to customize to your needs.
Determine net income.
Net income is the amount you make after taxes. Whatever your budget period (i.e. monthly), calculate net income for that period to use in your budget.
Estimate expenses.
There are two types of expenses. Fixed expenses, like rent, rarely change and are typically due the same time each month. Flexible expenses, like food and gas, vary each month.
Track your debt.
Make a list of all debt including credit cards, students loans, etc. Write down the amount owed and interest rate. This will allow you to calculate your debt-to-income ratio so you know how much income to put toward paying off debt.
Pay yourself.
It is important to pay your bills and debt, but it is equally as important to pay yourself! Saving not only prepares you for the future, but protects you from unexpected expenses. It's okay to start small, but aim to save ten percent of your income. As debt and expenses are elminated or cut, you can add more to your savings plan.