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You also have to know how much money you owe and when youre obligated to pay those bills. Budgeting helps you see your financial picture more clearly. To create a budget, add up your monthly income including wages and tips and then subtract your monthly expenses such as credit card bills, student loan payments, and groceries. How much money do you have remaining?Where do you spend most of your money?Which expenses could you cut back on?Plan to adjust your spending habits according to your circumstances. Budgeting can motivate you to spend only what you can afford. "Your situation probably wont look as pretty as you might hope," says Tammy Greynolds, the communications coordinator for a nonprofit financial education campaign.
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