[header] How to create a budget sheet [title] Understand how a budget works. [step] A budget is a plan for how you will and can spend your money. It helps you see where your money is going; can help you save for a vacation, car, college, or retirement; and can help you stay out of debt. 
The bottom line of a budget is that your expenses be equal to or less than your income. [substeps] Expenses (also called expenditures) are costs that you have: bills, loan payments, dry cleaning, food, clothes, and other needs.