There are two main ways to create a budget. You can do it yourself or use a budgeting app or service. The first step in developing a personal budget is calculating your total net income (take-home pay after all deductions). Make sure you consider all income sources, including passive income, alimony, side gigs, etc. Once you’ve done that, calculate all of your fixed and variable expenses -- that is, any bills, debts, and other monthly spending categories. The next step is to write down some short-term and long-term financial goals. Examples of short-term goals include saving $500 or paying off a credit card. A long-term goal, meanwhile, could be to save up for a down payment on a house or set aside money for a child’s education. Finally, look for any areas where you can reduce spending. Each month, put any extra money you have towards paying down your debts. Every so often, go back over your budget and make changes based on your current financial situation.