Create a simple budget by following these steps: 1) Track all income sources for one month. 2) List all expenses and categorize as fixed (rent/mortgage, utilities) or variable (groceries, entertainment). 3) Set realistic targets for each expense category based on past spending. 4) Allocate money to savings first (aim for 20% if possible). 5) Review weekly to track spending against targets. 6) Adjust categories as needed, focusing on reducing variable expenses first.