The most common budgeting method used is a blank piece of paper. We've all tried it at one time or another. Income is listed on one side, expenses on the other. The idea is to balance income against expenses so that, hopefully, there is still some money left at the end of the month. _ There are at least a couple major problems with this method. First, it's pretty easy to overlook quite a few expenses. Things like that daily stop at the coffee shop, or the cost of a car registration that happens only once a year.
Finally, take the information you have learned and create a budget for next month using a monthly budget worksheet. On this worksheet, you will fill in your income along with your fixed expenses, fixed variables, occasional expenses, and installments such as credit card payments. After you total up your income and all expenses you will be able to see if you have an excess at the end of the month or if you are short. If you are short, now is the time to cut back on some occasional expenses as well as some fixed variable expenses in order to operate a working monthly budget.