Making a budget is a process. A budget is a document used to estimate the incomes and expenditure for a certain period. In other words it is the process by which one takes control over the money that he earns. There are various reasons about why one needs a budget. For example you will be in control of your money, know how to pay off your debts, save for the future development and you can also get a chance to plan for your holidays.

The following are ways you need to follow in order for you to make a good budget. Know the amount of income that you earn, and then settle down all the bills you r bills such as electricity, water, fuel, rent and the rest. This will help you make financial statements that will help you create monthly information that will guide you on how to be using your cash during the other months.
It is also advisable to record all the sources of income per month. Then create a list of the expenses you will incur. Break the expenses into variable and fixed   expenses. The fixed expenses include mortgages, car payment and credit card payments. Whereas the variable expenses are the groceries, entertainment, gifts etc.

After knowing all the expenses total both your income and the expenses. If your income is still more than your expenses then you needed to continue with the same budget made. If the expenses is more than the income, you need to cut the expenses of that month for example cut the rate at which you spend your cash on the variable expenses.

You also need to do a review on your budget monthly to get an idea of knowing what to do with your money in the next month.  A budget will also help your to know how you will survive in the future. It helps you set the goals to carry out in life.

When budgeting, it is good not to dwell on the amount of money you are not sure of receiving. For example bonus, tax refunds or any other gains whether from investments or not. Do not also set a budget that too much amount of money will go luxuries and when the time of inflation comes you have no amount left to use. Therefore it is goop to be wise when making a budget if you are not able to do so you can as well seek for advice from a financial analyst.