Now we have reached the make adjustments phase, subtract your expenses from your income and if you have some money left over at the end of the month you have got yourself a budget. Realistically most people will not have a workable budget at this point, again it's not really your fault if you don't have a budget, because nobody ever took the time to show you how to set up a budget, much less help you stay on a budget. It doesn't take a rocket scientist at this point to figure out that you should reduce your nonessential spending habits and that's what they usually are is habits, they are your wants, not your needs. Pare your expenses down so you have some money left over at the end of the month and you now have your first monthly budget.
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.