After you have track your spending for a month, you now have the information you need to create a monthly budget. Now you know exactly how and what you spend your money on. If you did not have a surplus of money at the end of the month, you can now see area where you can trim your spending in order to operate you budget with a surplus next month.
When you start working with making a household budget it is extremely important to track your spending and all your expense both on a weekly and monthly basis. Many people dread tracking their expenses and recording every receipt but this is by far the best way to gain control over your spending. There is always a huge gap between what people think they spend and what they actually spend each month. So, tracking your spending is the only way to establish a working budget.