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How to Create a Budget: 6 Steps to Get You on the Path to Financial Security

subtract what you spent from month start to month end. Did you overspend? That’s a big red flag—you need a budget.

(And, really, you need one whether you overspend or not.)Start with the previous month to see what categories are flexible—what can you cut back? You’ve got to pay rent on the first, but do you have to eat a Chipotle burrito bowl every week? Didn’t think so. It might help to separate your categories into essentials and nonessentials, or extras.Remember: just because it’s an essential expense doesn’t mean you’re not overpaying.

Analyze your expenses like car insurance, which can increase if you’ve recently been ticketed or in an accident. Compare offers from big names like Progressive, , and to get an idea of what discounts are

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