What is a Budget
Budgeting involves keeping track of how you are spending and saving your money. Not only does budgeting help you prioritize and organize your spending, but it also lets you set financial goals for yourself. Once you are aware of how much you need to spend each month, you can determine how much you have available to save.

Write it Down
When planning your budget, make sure to write it down. Whether you prefer the computer or a pen and paper, seeing the actual numbers is an important step to budgeting. Include all your expenses, no matter how small. You may be surprised how the little things add up.

Review your Budget
Every once in a while, you should look back over your past budgets and see how they match up with what you actually spent. If the numbers are a little off, this is your chance to improve your future budgets. This is also a good opportunity to identify where you may be able to cut out some of your spending and put it into savings. If you learn that you are spending half of your income every month on fast food or jewelry, you may have found a place to cut back.