Creating a Budget
A good budget is a simple plan that fits your needs and includes your income, expenses, and savings and investments.
Think about your goals. What do you want your money to do for you?
List all sources of money that you can rely on. Convert this to the amount you can rely on as income monthly.
List your expenses. Some are fixed expenses like mortgage payments, real estate taxes, and insurance costs, and others vary month to month. You might consider paying yourself first by contributing to savings, investments, etc. and listing this as an expense. Don't forget to set aside emergency funds (three months of living expenses generally recommended).
Compare income and expenses. Your expenses should not exceed your income. If they do, you either need to find a way to reduce your expenses or increase your income to balance your budget.
If you have more income than expenses, consider creating a separate account to fund your goals. Make sure that your money is working for you.
Follow through with your goals. Revise your budget as your needs change.