Do you find yourself wondering where all the money goes by the end of the month? An effective budget will help you keep a close eye on your spending habits. Every penny does counts when a budget is involved. A budget plan varies from individual to individual since it takes into consideration various professional and lifestyle pursuits you indulge in. So, it’s important that while creating a budget, you must have an clear idea where your money goes, as this will help in streamlining the budget. Keep a track of your earnings and spending Start by organizing all the financial data you have, this includes your salary slips, bank statements, bills, and investment details. Create a sheet that has a record of these parameters. Then comes the part of where you tabulate your spendings based on your housing expenses, entertainment, savings, transport and miscellaneous. This helps you compare the monthly income versus your monthly expenses. This is the first step in prudent financial management. Goals towards saving and curbing spending You can either have a ledger or choose from a variety of mobile apps and computer software to create a database of your budget. Add your data and make sure you update it on regular basis, this will help you reach your goal of managing your hard-earned money effectively, making you critical of your spending in order maximize savings.