Creating a budget and adhering to it is one of the vital ways of controlling your finances and ensuring that your money is being used wisely.

 

1. The first step in creating a budget is to understand how you are spending your money and what you are spending it on. Begin by first keeping track of all your bills and everything you spend money on, over the course of three days to a week.

 

1. Evaluate your income and how much you are earning per paycheck after taxes.

 

1. Assess your current spending and compare it to how much you are earning, this will give you an idea of how much more you are spending and what you are spending your money on

 

1. Prioritize your spending in the order of importance and then look at what needs to be eliminated out of your spending

 

1. Evaluate and set goals that take into account your short and long term financial objectives

 

1. Try and figure out how much you can save per paycheck, if you realize that your expenses are too tight to allow room for saving try to figure out a way to cut out something out of your expenses to enable you save something every pay period.

 

1. If you realize that you are someone who purchases items on impulse remove all of your credit and purchasing cards out of your wallet or purse when you go out, keep them locked away, and keep only the amount that you have budgeted for with you when you go out. Also begin unsubscribing to all email notices that constantly remind you of upcoming sales and purchases. Stay away from the malls and shopping centers if you do not have any important business there

 

1. Use a personal finance tracking software or budget making tool to help you create a budget.

 

1. Track your spending and ensure that you stay within the guidelines

 

1. Access how you are doing after two weeks and make any necessary adjustments that are needed.