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Which steps should one take when creating a personal budget?

Track all income and expenses over a period of time, and then analyze the data to better understand how to move from a deficit to a balanced budget or a balanced budget to a surplus.


Record how one spends money during a holiday weekend, and then look for ways in which to spend more efficiently and make purchases that are more useful in the long term.


Review all of one’s income over a long period of time, decide how it should be spent, and then spend it as planned in a short period of time until all of the income is gone.


Write down what one hopes to earn over a period of time and what one imagines spending in that span, and then do one’s best to stick to that budget and develop a deficit.

User Mariano Iglesias
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1 Answer

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22 votes
Answer: option 1, the first answer

Explanation: the goal of a budget is not to gain a deficit. You can't base your budget on a holiday season... budget for an entire year and you don't ever spend money as fast as you can.

User Skeets
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