Creating a household budget the wise way to track your monthly expenses and income. It can also help you save money. The basics are straightforward. How much do you earn and how much do you spend on bills and other expenses? A big step in creating a household budget is figuring out your expenses. Important monthly expenses to track include: Costs that stay the same such as rent, car payments, and insurance. Costs that change such as electric bills and credit card payments. Money you spend on gas, groceries, and other items such as clothes and gifts. And always expect the unexpected. Try to set aside money each month for unplanned expenses such as medical bills or car repairs. Now think about your income. How much do you earn each month from your job? Do you have any other regular sources of income? How much do you have in your checking account? Knowing how much money you earn is key to knowing how much you can afford to spend. Try to spend less than you earn. And a big goal each month should be to put money into a savings account. After you create a household budget and get in the habit of recording your monthly expenses and income there is one more important step. Review your budget and make adjustments. At the end of each month, check your totals. Are they in line with what you expected? If you're spending too much look for ways to cut back. If you're spending less or earning more than expected take time to decide whether to give yourself a small treat with some of the extra money or add more to your savings for an even bigger cushion when you need it the most. Creating a budget today can lead to financial peace of mind tomorrow.