You don’t have to be a big corporation to benefit from a budget. In fact you don’t have to have any type of business at all. What’s true for a business (that you should earn more than you spent to make a profit) is also true for your own finances and to help you accomplish this on a regular basis, a personal budget can be a great tool.
Your budget can be as simple as a notebook or spreadsheet that you enter the following information in
Money you make or earn each month including your paychecks, and any income from stocks, rent etc.
In a seperate section or column you enter all your expenses including rent or mortgage, car payments, insurance, credit card payments, money spent shopping, utility bills etc.
Add the amounts in each column up and if your expenses outweigh your income, it’s time to cut back. Any money leftover should go into some sort of savings or investment account.