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.
Most of us went all the way through school with little or no education on how to budget money. We learned a lot of useless stuff and evidently money was rated below that. Why don't they teach this in school well it could be because very few people have learned how to budget money including teachers. _ There are three things you need to know before you can even start to set up a budget. You need to know your income, you need to know your expenses,, and then you have to make adjustments so that your income is greater than your expenses. Pretty straightforward stuff right? Except very few people actually budget their money.