Establish Spending Amounts

Review the income and expenses that you gathered. Put the expenses into the categories you have established so you can see where you've been spending. Total them and compare them to your income. How have you been doing? If you're overspending, determine where you can cut.

Establish new budget amounts for the time period you have chosen based on past expenses. Remember also to budget for quarterly, semi-annual, or annual expenses. (Example: you pay your car insurance every 6 months; divide that payment by 6 and budget that amount every month; put it aside where it won't be spent!)

Try to be flexible in your budgeting. Budgeting every last penny you earn may not be the best course because there are always unpredictable expenses that pop up. Be sure to budget some savings, even if all you can save is $5 a month. It's great to get into the habit of paying yourself first.