How to Set Up Your Budget. Setting up a budget is a straightforward process. It helps to have a list of the bills that you must pay each month as well as your expected income. If you have not budgeted before, you can start by looking at your past three month’s expenses. Using your bank statements to break these into categories. If you have budgeting software, you can upload your statements and use the software to start to sort them.
List your expenses starting with the most important to the least important. Listing the expenses in order makes it easier to make cuts in your budget if needed. The most important should be things that cover your necessities. You will need to cover your housing, food, utilities (not including cable television), transportation costs, debt payments, and savings goals first. Then you will list luxury items which can include clothing, entertainment, eating out and gym memberships.