Keep it simple.
Budgeting can be a great tool for managing your financial earnings, but it can become extremely overwhelming if it is over detailed. Sometimes you have to make sacrifices and not buy everything you want, but at the end of the day it is very important to be realistic with yourself. Just like dieting, the hardest part of budgeting is sticking to it. So the easier you make it, the better off you will be.
Set a time.
You can create your budget for a month, school year, or a whole calendar year. If you are currently enrolled in college or are on your way, you may want to consider creating a monthly budget for your semester classes such as fall, spring, or summer. Be conscious of your income for that it may vary from month to month, and not all of your expenses will be the same each month. Larger expenses (car insurance, books, & tuition) and seasonal expenses (trips to home or any vacation area throughout the year) need to be incorporated into your budget.
Create a Spending Category.
To estimate your monthly expenses, you’ll want to start recording everything you spend your money on in a month. This could be time-consuming but in the end it will definitely be worthwhile in helping you understand where the money is going and how to manage it better. After that, gather your bank records and credit card statements that will show you other expenditures that may be automatically paid. Don’t forget the “fun money” section or miscellaneous section. You need to give yourself some breathing room to be comfortable. Fixed expenses stay generally the same every month, variable expenses (such as groceries, going out, eating out, and buying new clothes) can change when ever a purchase is made.