A budget quite simply is a plan of your spending. Everybody needs to keep a record of how much they spend in relation to how much money they have coming in. To do this you will need to work out what your income is each month and what your expenses are. If your outgoings are bigger than the incomings then your overdraft and other debts will be rising all the time. An example of a record of your spending with a shortfall is:

It is also important to keep an up-to date record of your sources of debt.

For additional help living on a budget you can get free advice from the Citizens Advice Bureau - see their website below.

You can also speak confidentially to one of Connexions Personal Advisers, by phoning our free phone number: 0800 435 709