Although the answer may seem obvious, the word budget is quite often misused and misunderstood. To begin, what you spend your money on IS your budget; good or bad, whether you know it or not. For this reason a budget cannot be created so much as it can be modified.
Trying to set a budget, without fully knowing where all of your money is going leads to significant problems; you may see short term success, but in the long run the budget is doomed to fail simply because it’s not in line with your reality. Let’s say you can accurately list 80% of all your expenses; if you were to ‘create’ a budget based on those expenses, you’re going to run out of money. Something is going to have to pay for the remaining part of your life that has not been accounted for; that something
