By now you are working your plan and have a fairly clear understanding of your spending patterns. You have seen how much you spend on coffee in a week and just how expensive it is to park in the city. Hopefully this information can now be put to work to benefit you. By projecting your pattern forward you can plan better for future events. Maybe you want to save for a vacation, maybe you want to pay off debt and maybe you just want better control of your money. This is what a budget will do for you.
Take a look at your financial records and specific categories that you have listed. The more categories you already have established means that more precise the budget will be. First take a look at the overall total expenses you have had over the past few months. Average this amount. Now do the same for your income. Now, cross your fingers; hopefully your average expenses is lower than your average income. If it isn't then this is the first point that has to be fixed in the plan, but you have to know how to fix it. Take a look at your categories ( rent or mortgage, food, entertainment) and average those expenses as well. Looking at the numbers will give you some direction on where changes can be made. IF you had more expenses on average, then this difference (your deficit) has to be balanced. You need to find places where you can cut back. If you have a more income than expenses, this is a surplus. Start paying down debt and start saving money. Balancing your budget allows you to control your money and not let it control you.
For any more specific questions feel free to comment or email.
