If you want to stay out of debt, you need to set a budget. First, know what you are spending your money on. Write down what you buy and how much you spend. You can use an app or a computer program. Then look at your information. First, write how much your food, housing, transportation, and other monthly bills like electricity cost. These are your needs. Then write your goals. These are any debts you have to pay and money you want to save. Then write the other things you enjoy. These are extras, such as going to restaurants, the movies, or the gym. These are the things you like but don't need. How much do you spend on these extras each month?

Now look at your income. Your income is the amount of money you make each month. How much of it do you spend on needs, goals, and extras? One good rule is 50 percent of your paycheck is for your needs. Pay for things in this order： needs first, goals second, and extras third. The first step in setting a budget is to know where your money goes. Then you can make payments, plan for your goals，and make good choices.