Budgeting is a system of creating a plan to manage how and where you spend your money. By creating a plan, you can help determine if you have enough money to visit that nice hotel by the beach, or if you need to keep costs low for a month. Regardless of what you do, budgeting is essential. To budget effectively, you need to track your income, expenses, investments/savings, create goals, and adjust your budget frequently to ensure you are on the right track!
Allocate your income as follows:
Allocate every dollar of your income to a specific purpose, so your income minus expenses equals zero.