Creating a budget is a great way to set yourself up for financial success. It helps you understand how much you earn, spend, and save, and guides you towards your goals. Start by listing your income, savings, and expenses — either on a spreadsheet or with a pen and paper (if you’re feeling old school). Next, categorize your expenses into needs (like rent or car payments) and wants (like dining out). Then, compare your spending to your savings and look for areas to improve. Once you know where you stand, set short-term (like an emergency fund) and long-term (like buying a home) goals. At the start of each month, set a budget for your wants, needs, and short- and long-term savings. You can use the 50/30/20 budgeting method: 50% for needs, 30% for wants, and 20% for savings and investments. At the end of the month, review how well you stuck to it. Over time, you'll notice patterns in your spending and stay on track with debt repayment and saving.