If you carry a credit card balance, the minimum payment is a "need" and it counts toward the 50 percent. Anything extra is an additional debt repayment, which goes toward this 20 percent category. If you carry a mortgage or a car loan, the minimum payment is a "need" and any extra payments count toward "savings and debt repayment."
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.