Sticking to a budget may seem difficult, but it can be done.  The first step to setting up a budget is to determine what you make and what you need to pay out in expenses each month.  Then you will need to determine anything you need to pay using what money you can save on your budget.

There are a few steps you should follow for your budget:

1. Figure out what your committed costs are.  These are thing you must pay, including expenses like mortgage payments, utility bills, etc.
2. Figure out what your essential costs are.  These are things like your food bill, gas bill, etc.  What you will have left after #1 and #2 is your disposable income that can be used for luxury items such as clothes or coffee.
3. Figure out any consumable costs you will want to pay on a monthly basis.  This is for things such as birthday presents, movie tickets, or a hobby you have.  This can vary from month to month or you can budget a certain amount each month.

You must stick to your budget for #3.  If you create a budget, but still buy things that you haven’t listed in #3, your budget will be useless.  Once you can accurately predict what you have at the end of each month, you can know your budget is working.

Here are a few more tips to budgeting:

• Don’t spend all your money down to the last dime.  If you spend and do not have any savings, you won’t be prepared for unexpected costs such as car repairs.
• Save a little each month for an emergency.  At first, you may not have very much, but as you continue to save each month, you will see your saving build.
• It will take some work, but stick to your budget.  Remember that a budget only works if you adhere to it.  Once you start to stray, money begins disappearing.
• Keep track of your monthly costs.  See if anything, such as a bill has increased or if there is something you can cut out to save even more money.  You may be surprised at the amount of goods or services you pay for each month that you can actually do without.