A budget is a spending plan that accounts for your sources of income and all your monthly annual expenses, as well as your future needs and possibilities.

Although creating a budget seems like a logical first step in your financial journey, we think it’s important to first understand your spending. Once you’re able to do that, you can start working on your budget. But how?

Step One: Choose a Budgeting Tool

• • Spreadsheet
  • Accounting Software
  • Online/Mobile Apps
  • Other

Step Two: Choose a Time Period

• • Week
  • Month
  • Year
  • Other

Step Three: Make estimates about your income and expenses

Step Four: Calculate Your Savings

• • Income – Expenses = Savings

Oh, and don’t forget: your income should exceed your expenses.

Here’s a few budgeting tips to help you get started:

• Be Goal-Oriented
• Be True to Your Values
• Prioritize Savings Over Spending
• Control and Manage Your Money Wisely

Financial Beginnings is a national 501(c)(3) nonprofit that empowers youth and adults to take control of their financial futures. Their educational programs incorporate all aspects of personal finance to give individuals the foundation they need to make informed financial decisions. Financial Beginnings reaches more than 200 K-12 schools and colleges and more than 100 community-based organizations annually, serving all groups with special focus on populations most in need. For more information, visit www.financialbeginnings.org.