Establishing a budget to can help you save the money you need to start a small business, buy your first home or send your children to college. You might think that you don't need a budget and can save money without one, but everyone can benefit from a budget.  Have you ever started the day with $20 and, at the end of the day, not known where it all went?  If so, you might want to develop a budget. 

A budget is a simple tool to help you understand where your money goes.  If you own a business, knowing how to budget will help you understand how money flows in and out of your business.  There are three steps to creating a budget:

1. Identify Your Net Monthly Income
   The first step in developing a budget is to identify the money that comes into your household after all of the deductions have been made, such as taxes, Social Security insurance, etc. 
2. Identify Your Monthly Expenses
   The second step is to identify the things you spend money on.  Be sure to include expenses that occur every month like rent and phone bills, as well as expenses that occur periodically like car insurance and medical bills.
3. Subtract Your Monthly Expenses from Your Income
   The final step is to identify if you have money left over and decide how to spend or save that money.  If your expenses are greater than your income, you and your family have to decide which expenses can be reduced or decide how you can earn more income.

Monthly Budget Worksheet