The steps to follow in creating a budget

[Egii Nna]

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.
 
The steps in the budget include

1. Determine your income: As the first step in creating a budget, you have to know your total income in terms of what you can afford. Do not write a budget that is more than your income and end up not achieving anything at the end because your income determines your budget, so let's take note of our income first. This income might include your weekly,monthly, or even yearly income, as well as side hustles and any other source of income.
 
2. Identify where your money is going: The second step in creating a budget is to track your expenses. This is also very important because, without knowing how you usually spend your money, you will end up writing a budget that you can’t even stick to. More over, expenses include housing, transportation, food, entertainment, gambling, and so on. When you have identified where your money is going, you can categorise it into groups. For instance, clothing, house rent fees, and others should all be in the category of housing. If that is done, you have definitely achieved your second step in creating a budget.
 
3. identify or set an achievable goal: This is the third step in creating a budget when you have identified your income, tracked your expenses, and categorised them. Why I say achievable goal is that you have to set a goal that you can achieve either long-term or short-term. For instance, you might save money in order to pay your debts, invest the money, or even pay for housing and any other expenses, such as buying valuable and usable items that won’t be a liability to you.
 
4. Start creating the budget or priorities for your expenses: This is the next step, for me. This is the step where you will start writing the budget. It is not that you won’t write those other steps I mentioned earlier; you will also write them, but this is the stage where you will allocate some amount of money to the categories that you have created at the second step, and you have to make sure that it aligns with your priorities. After allocating a certain amount of money to those categories, you should make sure that you keep some of it as emergency funds; it is also important.
 
5. Review the budget; in some cases, I mean monitoring, evaluation, or adjustment of the budget. This is like the final stage in creating a budget, although this stage is a continuous process because this stage never comes to an end unless you have purchased all that you have put in your budget to achieve this process, including regular adjustments as needed to accommodate and adjust your budget. This is done in case something comes up, such as the use of the emergency fund that you keep as a category for things like an increase in the price of what you intend to buy for medical expenses, which might be an emergency, and many others. In this step, you must track your budget very carefully and with caution to make sure you have achieved it.
 
The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.
 

[1714485690]

1714485690

[DrBeer]

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.
 
The steps in the budget include

1. Determine your income: As the first step in creating a budget, you have to know your total income in terms of what you can afford. Do not write a budget that is more than your income and end up not achieving anything at the end because your income determines your budget, so let's take note of our income first. This income might include your weekly,monthly, or even yearly income, as well as side hustles and any other source of income.
 
2. Identify where your money is going: The second step in creating a budget is to track your expenses. This is also very important because, without knowing how you usually spend your money, you will end up writing a budget that you can’t even stick to. More over, expenses include housing, transportation, food, entertainment, gambling, and so on. When you have identified where your money is going, you can categorise it into groups. For instance, clothing, house rent fees, and others should all be in the category of housing. If that is done, you have definitely achieved your second step in creating a budget.
 
3. identify or set an achievable goal: This is the third step in creating a budget when you have identified your income, tracked your expenses, and categorised them. Why I say achievable goal is that you have to set a goal that you can achieve either long-term or short-term. For instance, you might save money in order to pay your debts, invest the money, or even pay for housing and any other expenses, such as buying valuable and usable items that won’t be a liability to you.
 
4. Start creating the budget or priorities for your expenses: This is the next step, for me. This is the step where you will start writing the budget. It is not that you won’t write those other steps I mentioned earlier; you will also write them, but this is the stage where you will allocate some amount of money to the categories that you have created at the second step, and you have to make sure that it aligns with your priorities. After allocating a certain amount of money to those categories, you should make sure that you keep some of it as emergency funds; it is also important.
 
5. Review the budget; in some cases, I mean monitoring, evaluation, or adjustment of the budget. This is like the final stage in creating a budget, although this stage is a continuous process because this stage never comes to an end unless you have purchased all that you have put in your budget to achieve this process, including regular adjustments as needed to accommodate and adjust your budget. This is done in case something comes up, such as the use of the emergency fund that you keep as a category for things like an increase in the price of what you intend to buy for medical expenses, which might be an emergency, and many others. In this step, you must track your budget very carefully and with caution to make sure you have achieved it.
 
The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.

A very correct approach!
A person must be able to manage his resources - from time to money, and this requires information and planning.
Without this, at best, you will not have enough of your previous salary while waiting for the future one. Costs for communal payments and other mandatory payments may simply leave a “hole in your pocket” at a certain point, although within a month your income covers your expenses. This is me about calendar planning of income/expenses
In a word - a very useful approach which, by the way, will most likely show that you are spending some part of your income, to put it mildly - irrationally

[|MINER|]

A very useful post.  All of us should have an ideal budget plan before the start of the year.  All of us will benefit a lot if we follow these rules and plan our budget.  Before the budget plan, it is right to think about our income and expenses.  Uncontrolled travel expenses drag down our finances.  Planning is very important to manage life well.

[0t3p0t]

A very useful post.  All of us should have an ideal budget plan before the start of the year.  All of us will benefit a lot if we follow these rules and plan our budget.  Before the budget plan, it is right to think about our income and expenses.  Uncontrolled travel expenses drag down our finances.  Planning is very important to manage life well.

I agree with you mate. This will also help us to avoid overspending on something we don't really need. Mismanagement of our budget may lead to financial instability. The best thing to do here is to prioritize our needs instead of wants as we all know that most "wants" means liability.

[coupable]

This is a completely logical approach.

1. Determine your income: As the first step in creating a budget, you have to know your total income in terms of what you can afford. Do not write a budget that is more than your income and end up not achieving anything at the end because your income determines your budget, so let's take note of our income first. This income might include your weekly,monthly, or even yearly income, as well as side hustles and any other source of income.

I think this is the most important factor determining the type and method of creating a budget. On this basis, I would like to delve a little deeper into this point, considering that the size of income versus the size of expenditures can determine the size of the budget that can be created at a given time. This requires a basic condition, which is the presence of surplus income to enter into saving (according to a precise plan) and the size of the budget that can be obtained be clear.
This leads us to consider that the more revenues exceed expenses, the easier it becomes to plan to create a budget. It becomes easier if we adopt what investors call “diversifying sources of income,” because often someone who has one source of income (even if it is fixed) cannot balance it with expenses in order to be able to develop a plan to create a budget.

[IvugeoEvolutionCoin]

A very useful post.  All of us should have an ideal budget plan before the start of the year.  All of us will benefit a lot if we follow these rules and plan our budget.  Before the budget plan, it is right to think about our income and expenses.  Uncontrolled travel expenses drag down our finances.  Planning is very important to manage life well.

If you want to be happy in life, everything must follow the rules. If a person moves outside the rules or spends money, he will have to face many problems at some point. For example, due to spending extra money, he may run out of money at some point or even bigger.  If we can follow the rules then we can organize our life very nicely. There are some people who spend extra without accounting for anything they have to face a lot of problems. If we try to calculate them  If I do, I don't think there will be any problem.

[jeha2015]

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.
 
The steps in the budget include

1. Determine your income: As the first step in creating a budget, you have to know your total income in terms of what you can afford. Do not write a budget that is more than your income and end up not achieving anything at the end because your income determines your budget, so let's take note of our income first. This income might include your weekly,monthly, or even yearly income, as well as side hustles and any other source of income.
 
2. Identify where your money is going: The second step in creating a budget is to track your expenses. This is also very important because, without knowing how you usually spend your money, you will end up writing a budget that you can’t even stick to. More over, expenses include housing, transportation, food, entertainment, gambling, and so on. When you have identified where your money is going, you can categorise it into groups. For instance, clothing, house rent fees, and others should all be in the category of housing. If that is done, you have definitely achieved your second step in creating a budget.
 
3. identify or set an achievable goal: This is the third step in creating a budget when you have identified your income, tracked your expenses, and categorised them. Why I say achievable goal is that you have to set a goal that you can achieve either long-term or short-term. For instance, you might save money in order to pay your debts, invest the money, or even pay for housing and any other expenses, such as buying valuable and usable items that won’t be a liability to you.
 
4. Start creating the budget or priorities for your expenses: This is the next step, for me. This is the step where you will start writing the budget. It is not that you won’t write those other steps I mentioned earlier; you will also write them, but this is the stage where you will allocate some amount of money to the categories that you have created at the second step, and you have to make sure that it aligns with your priorities. After allocating a certain amount of money to those categories, you should make sure that you keep some of it as emergency funds; it is also important.
 
5. Review the budget; in some cases, I mean monitoring, evaluation, or adjustment of the budget. This is like the final stage in creating a budget, although this stage is a continuous process because this stage never comes to an end unless you have purchased all that you have put in your budget to achieve this process, including regular adjustments as needed to accommodate and adjust your budget. This is done in case something comes up, such as the use of the emergency fund that you keep as a category for things like an increase in the price of what you intend to buy for medical expenses, which might be an emergency, and many others. In this step, you must track your budget very carefully and with caution to make sure you have achieved it.
 
The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.
 

Living in an era like this, we really have to make a budget where everything we buy is expensive, starting from vehicles, gadgets, houses and so on. Plus one of the few advantages is that it has weathered the Great Recession.

All the suggestions you give are good and must be applied in everyday life. Reduce unnecessary expenses, increase your savings by investing in the crypto market and don't sell.. One thing I know for sure is that diversifying your income can help protect you from a lot of the craziness going on in the world.

[Zoomic]

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.
 
The steps in the budget include

1. Determine your income: As the first step in creating a budget, you have to know your total income in terms of what you can afford. Do not write a budget that is more than your income and end up not achieving anything at the end because your income determines your budget, so let's take note of our income first. This income might include your weekly,monthly, or even yearly income, as well as side hustles and any other source of income.
 
2. Identify where your money is going: The second step in creating a budget is to track your expenses. This is also very important because, without knowing how you usually spend your money, you will end up writing a budget that you can’t even stick to. More over, expenses include housing, transportation, food, entertainment, gambling, and so on. When you have identified where your money is going, you can categorise it into groups. For instance, clothing, house rent fees, and others should all be in the category of housing. If that is done, you have definitely achieved your second step in creating a budget.
 
3. identify or set an achievable goal: This is the third step in creating a budget when you have identified your income, tracked your expenses, and categorised them. Why I say achievable goal is that you have to set a goal that you can achieve either long-term or short-term. For instance, you might save money in order to pay your debts, invest the money, or even pay for housing and any other expenses, such as buying valuable and usable items that won’t be a liability to you.
 
4. Start creating the budget or priorities for your expenses: This is the next step, for me. This is the step where you will start writing the budget. It is not that you won’t write those other steps I mentioned earlier; you will also write them, but this is the stage where you will allocate some amount of money to the categories that you have created at the second step, and you have to make sure that it aligns with your priorities. After allocating a certain amount of money to those categories, you should make sure that you keep some of it as emergency funds; it is also important.
 
5. Review the budget; in some cases, I mean monitoring, evaluation, or adjustment of the budget. This is like the final stage in creating a budget, although this stage is a continuous process because this stage never comes to an end unless you have purchased all that you have put in your budget to achieve this process, including regular adjustments as needed to accommodate and adjust your budget. This is done in case something comes up, such as the use of the emergency fund that you keep as a category for things like an increase in the price of what you intend to buy for medical expenses, which might be an emergency, and many others. In this step, you must track your budget very carefully and with caution to make sure you have achieved it.
 
The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.
 

This is a very important thing to do especially now that we are experiencing financial crisis around the world.  The new year is another opportunity to correct the errors we made the previous year and having a budget is one way of achieving that. The budget will make us have a sense of direction.  While working hard for your money,  the budget will help one to adequately distribute the earned money to effective use. Earning money is not just enough,  but how you spend your money is something to be concerned about.  If you spend well, you might be getting returns after every good expenditure but if you spend carelessly,  that money spent is gone and gone for ever. last thing anyone would want to do next year is entering the year without a goal or a direction.  If you fail to plan your life well,  then you are obviously planning to fail. No more room for excuses,  it's not too late to make that plan (budget).

[Fortify]

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.
 
The steps in the budget include

1. Determine your income: As the first step in creating a budget, you have to know your total income in terms of what you can afford. Do not write a budget that is more than your income and end up not achieving anything at the end because your income determines your budget, so let's take note of our income first. This income might include your weekly,monthly, or even yearly income, as well as side hustles and any other source of income.
 
2. Identify where your money is going: The second step in creating a budget is to track your expenses. This is also very important because, without knowing how you usually spend your money, you will end up writing a budget that you can’t even stick to. More over, expenses include housing, transportation, food, entertainment, gambling, and so on. When you have identified where your money is going, you can categorise it into groups. For instance, clothing, house rent fees, and others should all be in the category of housing. If that is done, you have definitely achieved your second step in creating a budget.
 
3. identify or set an achievable goal: This is the third step in creating a budget when you have identified your income, tracked your expenses, and categorised them. Why I say achievable goal is that you have to set a goal that you can achieve either long-term or short-term. For instance, you might save money in order to pay your debts, invest the money, or even pay for housing and any other expenses, such as buying valuable and usable items that won’t be a liability to you.
 
4. Start creating the budget or priorities for your expenses: This is the next step, for me. This is the step where you will start writing the budget. It is not that you won’t write those other steps I mentioned earlier; you will also write them, but this is the stage where you will allocate some amount of money to the categories that you have created at the second step, and you have to make sure that it aligns with your priorities. After allocating a certain amount of money to those categories, you should make sure that you keep some of it as emergency funds; it is also important.
 
5. Review the budget; in some cases, I mean monitoring, evaluation, or adjustment of the budget. This is like the final stage in creating a budget, although this stage is a continuous process because this stage never comes to an end unless you have purchased all that you have put in your budget to achieve this process, including regular adjustments as needed to accommodate and adjust your budget. This is done in case something comes up, such as the use of the emergency fund that you keep as a category for things like an increase in the price of what you intend to buy for medical expenses, which might be an emergency, and many others. In this step, you must track your budget very carefully and with caution to make sure you have achieved it.
 
The steps I have listed above are the ones I follow whenever I want to write a budget. You can change this step in many ways. For instance, a gambler can use it, but it will be more effective with the amount he needs for the gambling, and he should make sure he follows the track, so stick to the budget to avoid the source of unusual spending.
 

It's really critical that you use your actual bank statements, because so many small things can be overlooked when you're just working from memory and it's the small things that can really add up over time to undermine your budget. Being honest with yourself and cutting back is also critical - do you really need that gym membership that you've used twice in a whole year? Why are you keeping 3 different TV subscription plans running, when you probably only need one and could rotate them when necessary? It's also dangerous when you start on a small salary and grow it over time, as you can start getting lax with your outgoings or purchase unnecessary luxuries which could be beyond your means, recheck your budget often to see these changes.

[Zlantann]

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.

Thank you for taking the time to come up with these wonderful budgeting tips. It is vital to measure your income with your expenses and see the outcome. If you can save some money no matter how small after paying for your expenses, you have a good budget. But if you have to borrow to finance some of your expenses, then you have to readjust your budget.

I am not moved by festivals or holidays like Christmas. I still ensure that I spend within my means. If I don't have extra funds to finance house decorations, new clothing, or travelling for vacation,  I will have to drop them from my budget because they are not basic needs. I have always told people that we have to enjoy Christmas based on what we have and we should never borrow because we want to celebrate Christmas in a big way more than what we can afford. We shouldn't lose sight that January comes with a whole lot of bills.

[Captain Corporate]

I am not doing it right now, but I used to do a method that I learned from "friends" tv show. Obviously that was in the 90's so it was quite possible, and it was set in the USA so it was even more possible, not really possible here where I live currently with world record breaking inflation rates we just had in the few years, we had %100+ inflation rates, for a few years, and my income didn't go up like that, so this method is for people who live in a bit more stable places. Just put certain % aside every single time you get a paycheck and assume whatever left is your salary. So you get 1000 dollars a month? Put 100 aside and imagine you get paid 900 and then that 100 is not available, it never existed, you never got paid it, its somewhere safe, like a bitcoin investment, or gold, nothing crazy like futures or margin, and you just keep doing that for a few decades and you should be able to retire rich.

[Fatunad]

Everything would really be that correlated or connected to each other but this is the one i do really
like to emphasize. 5. Review the budget;

This is the most crucial thing i would say that a certain individual must mind on on which you should really know on how to budget on which it would really be
that basing up into your income on which it is really just that right that if ever you do see that you are spending up too much on a particular thing then it should be controlled and minimize
because if you dont stop it or find a way the financial struggle could really be experienced.

Budget would be crucial even if  you are that earning that much but the spending or taking out those funds is on uncontrollable manner then it would really be pointless or useless.
This is why it would really be that important that you should really know on how to set those things specially if you are having your own family then budgeting
will really be that something needed for you not to face up those financial problems. As much as possible we should be finding another source
if we do tend to have that upgraded kind of living but if its there's none then stick to the basics.

[Rockstarguy]

Living in an era like this, we really have to make a budget where everything we buy is expensive, starting from vehicles, gadgets, houses and so on. Plus one of the few advantages is that it has weathered the Great Recession.

All the suggestions you give are good and must be applied in everyday life. Reduce unnecessary expenses, increase your savings by investing in the crypto market and don't sell.. One thing I know for sure is that diversifying your income can help protect you from a lot of the craziness going on in the world.

Because of how expensive things are this it is why it is important to budget how every money is being spent,  if you don't follow up how your money comes in and what the money goes out for you will just end up saving anything.  Now that we are facing serious economic crisis this when we need to plan budget and learn how to spend with budget. The inflation rate which is the reason why things are very expensive should not be a reason why people won't bother to make plan in budgeting expensive, despite how things are very expensive if money is well planed how it is being spent it is possible to have remaining for savings.

[Gozie51]

Like they have said that he who didn't plan has already planned to fail and this is why we have some businesses springing up but they are not succeeding because of lack of proper guide and management. Budgeting is one of the leading factors to business and it growth.

A business person who knows what he is doing, would take stock of his business from time to time and make plans to growth it. Businesses are not handled into success for the lack of proper budgeting, even the government budget on how to carry out his capital projects and recurrent expenditure. Budget determines how far the business will grow or how soon it will crash also depends on lack of proper budgeting.

[TimeTeller]

Like they have said that he who didn't plan has already planned to fail and this is why we have some businesses springing up but they are not succeeding because of lack of proper guide and management. Budgeting is one of the leading factors to business and it growth.

A business person who knows what he is doing, would take stock of his business from time to time and make plans to growth it. Businesses are not handled into success for the lack of proper budgeting, even the government budget on how to carry out his capital projects and recurrent expenditure. Budget determines how far the business will grow or how soon it will crash also depends on lack of proper budgeting.

Having a plan and budget is definitely needed in order to have organized life.
No plan at all is detrimental to any path that you want to take.
List your priorities according to the importance of the item/task to your goals.
Because you may be neglecting vital tasks and considering secondary tasks on top of your priorities.

[oktana]

Well said. For me I think what’s most important to consider is the step one which talks about determining your income. You first need to acknowledge and respect your income. You can’t create a budget without factoring this in. Something else is about your needs. While you create your budget, consider what you need first, don’t go creating a budget for a want when you have needs to meet. And even when you have done that, you still need to arrange them in order of priority and then create the budget. This still works.

[kamvreto]

Marry Christmas and happy new year.
 It comes to me to share my knowledge with others, but I am sure some might know the steps in creating a budget, but it might be that they are not following it effectively. I hope if I share such knowledge, it will help a lot, especially in the season we are in now. I know that as we have already celebrated Christmas, we have spent much of our savings, which we are still going to spend more on when it comes to the New Year celebration, so I take this as a reason to share such information with others so others will not suffer, especially after all this celebration, so I will list and explain the steps in creating a budget.

Thank you for taking the time to come up with these wonderful budgeting tips. It is vital to measure your income with your expenses and see the outcome. If you can save some money no matter how small after paying for your expenses, you have a good budget. But if you have to borrow to finance some of your expenses, then you have to readjust your budget.

I am not moved by festivals or holidays like Christmas. I still ensure that I spend within my means. If I don't have extra funds to finance house decorations, new clothing, or travelling for vacation,  I will have to drop them from my budget because they are not basic needs. I have always told people that we have to enjoy Christmas based on what we have and we should never borrow because we want to celebrate Christmas in a big way more than what we can afford. We shouldn't lose sight that January comes with a whole lot of bills.

Borrowing money just for additional needs such as for Christmas will only add new problems and after the Christmas holidays are over there will be lots of bills that will make us have to work even harder. spending something must be adjusted to financial capabilities so that there will be no such thing as a shortage of funds, everything must be arranged so that the available funds must be sufficient.

[ChiBitCTy]

Creating a budget is something economically wise that not enough people tend to do or take seriously.  Here is a link for anyone looking to create their budget.  https://www.empower.com/learning_center/calculators/managing-monthly-budget.shtml#/

This link will make it easy to break down your monthly expenses.  This is something I recommend that my clients do AT LEAST once a year.  This is really the ultimate way of knowing whether you're saving enough for retirement or not.  Also just to know if you're spending too much money in certain areas.

[Bananington]

The steps I have listed above are the ones I follow whenever I want to write a budget.

Budgeting is quite good, but while you're trying to make a budget and you've listed everything you need and want for the year or month depending on the duration the budget is for, you should always not forget to make provision for emergencies and situations that are usually unplanned so that you'll be prepared for them when they happen and we will not have to tamper with money that you have kept for other purpose just to sort and remedy these emergency situations.

[adzino]

You got it right but the most important and key step from all those points is having priorities. One must set proper priorities on their expenses. Most people fail to create a "budget" plan and remains broke by the end of the month just because of spending money on things they could have "lived" without. They give priorities to "useless" things and then they end up struggling to pay their bills. If paying bills is your priority, pay that first. If paying your debts is your next priority, then do that. "Saving" can also be a priority. After you are done saving, the rest of the money that is left is yours to spend on anything you want. Budgeting is not as complicated as people thing. As long as they keep themselves organized and spends responsibly, they will always be able to follow their budgets.