For some people, budgeting comes as second nature. But others are not as blessed with “financial prowess” and need to do some extra work. Setting a budget is easy enough, but when it comes to following your budget you may be in a little bit of trouble. Anybody can say they have a budget, but only those who are truly interested in financial success will follow it.

Here are three basic budgeting tips to guide you:

1. Know your income. This is one of the most important numbers for setting a budget. You need to know how much money is coming in each month so you can determine how much money you can comfortably spend. Remember to count all income including your primary job, secondary jobs, etc.

2. Know your expenses. Just as you need to know your income you also need to have a good feel of how much your expenses total. One rule of thumb: you should not be spending more than you are earning. If so, you are either taking money from your savings or using a credit card; both of which will harm you soon enough if you continue.

3. What are you going to do with your savings? The difference between your income and expenses is extra money that you have each month. What are you going to do with it? While the choice is yours you may want to think about starting a savings account, emergency fund, or paying extra on your debt. Consider all your options to ensure that your “extra” money is being put in the right place.

The above tips are perfect for anybody who is planning their first budget or those who need to get back to the basics. No matter who you are the basics of budgeting include knowing your income, expenses, and what to do with your savings.

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