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First of all you need to know how much money you earn, for some people this is easy you look at your Wθ form and there it is, but for seasonal workers, small business people, it gets a little more complicated than that. If you receive income from a lot of different sources for a realistic value of what you actually earn itemize them, put them down on paper. Include all income, now is not the time to be hide money from the IRS you are just fooling yourself, you need to have factual figures here of your true income otherwise you will actually think you're in good financial shape because you know you got this extra income somewhere, but that's not always true.

Setting up a budgeting worksheet isn't a hard chore. In fact, if you like using spreadsheets it can actually become quite enjoyable. The beauty of a budgeting worksheet is that you can see all your numbers at a quick glance in an easy to read format. It's instantly editable so changes can be made on the run and will save considerably on white_out. And perhaps the best feature, is that you can always keep a history of your transactions (depending on your hard_drive space).

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