Building a Budget
Creating a budget is important and luckily it can be easy! Don't get discouraged if you don't stick to it at first. Like with most things, creating this habit takes practice.
Evaluate your spending
Keeping track of what you spend money on is important. Knowing how many times you eat out every week, or go by Starbucks can help you in cutting back your spending and allocating properly to your budget.
Figure Out What is Necessary
Your necessary spending are things like water bills, electric bills, and groceries. This need to be accounted for before you can think about saving and spending.
Budget Your Savings
After you budget your necessary spending you should allocate money for savings. It is recommended that you put about 10% to 20% of every paycheck away for savings.
Budget for Spending
Now that you have budgeted your necessary items and your savings, you can focus on entertainment and other discretionary spending. Usually whatever is left over after steps 2 and 3 you can use for whatever purpose you would like.