What is a Budget?

At its heart, budgeting is simple. A basic zero-based budget involves taking all of your income, dividing it between a few broad categories (savings, housing, living expenses, transportation, clothing, fun, etc) then tracking your spending in all categories to ensure that you stay within your budget. Some people like to use cash envelopes for their categories so they can't overspend. Budgets can get more complicated based on how many categories you have and how you break them up. If you have multiple paychecks coming in throughout the month, that can add some complexity too. The best way to find out what will work for you is to try. Just start. It might be messy. It won't be perfect, but you are making progress toward finding what works for you. You might want to try a pen and paper or make a spreadsheet. There are many programs that can help you create a budget.