The most important of these is automatic savings. Open a savings account, and set up your checking account so that you automatically transfer a set amount each month into your savings account. You don't have to transfer much money _ start with whatever your budget can afford. But making this automatic (and then resisting the urge to spend the money impulsively) will get you on the road to long_term savings.
Step 1: Note your net income. The first step in creating a budget is to identify the amount of money you have coming in. Keep in mind, however, that it's easy to overestimate what you can afford if you think of your total salary as what you have to spend. Remember to subtract your deductions for Social Security, taxes, 401(k) and flexible spending account allocations when creating a budget worksheet. Your final take_home pay is called net income, and that is the number you should use when creating a budget.Tip: If you have a hobby or a talent, you may be able to find a way to supplement your income. Having an extra source of income can also be helpful if you ever lose your job.