[header] How to understand personal finance basics [title] Gather your financial statements and information. [step] Creating a budget is one of the most important aspects of personal finance. A solid budget allows you to plan for how you'll spend the money you bring in each month and illustrates your spending patterns. 
To begin, gather all the financial information you can, including bank statements, pay stubs, credit card bills, utility bills, investment account statements, and any other information you can think of. [substeps] Most people make monthly budgets so your goal is to figure out how much you make in a month and what your monthly expenses are.