The best way to start a budget is to take stock of your money coming each month and the expenses you incur monthly. By accounting for these items, you can see the difference between your income and expenses and determine if there is an overage or shortage of money each month. If there’s extra money, it’s always a good idea to save some of it in the event of an unexpected expense. Having an emergency savings account is an excellent way to ensure you are able to always meet your monthly financial obligations.
If you find you have more expenses than money, you will need to prioritize your expenses, minimize any that you can and possibly seek out additional sources of income. Trying to keep debt at bay is one way to help ensure your income always meets or exceeds your expenses. Another strategy is to be mindful of your discretionary (i.e. non-essential) expenses and manage those carefully.