BUDGETING

Before we begin budgeting, it is highly recommended you read and re-read the "give yourself a raise" section.
More on that later.

For many of us, just the thought of starting, then maintaining, a budget is right up there with dental surgery.
It's really too bad because even the "hard" part (creating the budget itself) isn't difficult at all and maintaining it is usually even easier.

Perhaps the best explanation of a budget's purpose is by author John C. Maxwell: As he puts it, “A budget is telling your money where to go instead of wandering where it went.”
 I've never heard anyone put it any better. 
Again this isn't going to be that complicated.
Also bear in mind when we refer to a budget we're speaking about a monthly personal financial budget.

A budget, when reduced to its simplest possible form consists of only two major components.

First: All the money that comes in.

Second: All the money that goes out. 

There's more to it but these are the parts you have to understand the most.

All the money that comes in would include income that can be reliably counted on such as job earnings either full-time, part-time, or both.

Investment income that can be counted on such as rental income, high yield savings accounts, or any other sources (work bonuses, tips, alimony) or any other income that again, we can reasonably count on.

All the money going out is usually a little more complicated but only because there's always more ways to spend it than make it (sound familiar?).

IMHO the best way to insure your not regularly missing any monthly, semiannual, or annual expenses is to go online and go back two years of both your checking and savings account.  
Take notice of all expenses large and small including those little ankle bitters and note those times of year you could identify as problem areas (i.e. Christmas, summer vacations, etc).

Take note that the online two year checking and saving is the basis for the "give yourself a raise" section.
Because most likely you're getting a raise.

A budget has but one absolute rule, don't go over it. 
After that it's all on you to align your long term dreams with your current obligations.
A few closing notes to help keep you from going off road. 
First Read ("give yourself a raise"). 

Remember a budget is really just a thorough record of all your money coming VS all your money going.
 It's not a complicated process and will ease many of the anxieties that are plaguing many of us, and unnecessarily at that. 
Also don't forget to budget for those things that make life worth living.
Budgeting, after all is about YOUR DREAMS. 
Not a life of extreme sacrifice so one day you can enjoy a better existence.

Your budget represents what you most want your life to look like. 
Nothing more or less.