14 If you have an income and also have expenses, it's a good idea to create a budget. Many people are uncertain as to how much they spend, how much they earn, what they can afford, and what they owe. They spend more than they can afford, and then wonder how they’re going to pay off all their debt. The first step in avoiding this situation is to create and maintain a budget. Create a Budget First select a tool. To create a budget, you need a way to track your income (money coming in) and expenses (money you spend). You can go old school and create a simple pen and paper entry system, or use an online spreadsheet such as Microsoft Excel or Google Sheets. A particularly popular option among young adults is to use a budgeting app. There are dozens, including Mint, Monefy, Money Lover, and Good Budget. These tools offer convenience. Every time you make a purchase, withdraw cash, or deposit a check, you simply enter it on your app. Select a time period. Some people organize their budget by the month (or six months); others prefer to create a weekly budget. Select the time period that works best for you. A budget is simply a plan used to decide the amount of money that can be spent—and how it will be spent. Having and main- taining a budget involves managing your money by tracking your spending and income, and living within your means.