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The first step to creating a budget is to determine a baseline for your income and your expenses. Document everything that you know you normally spend throughout a month, as well as what you can expect to receive monetarily. Note only the expenses and income that you can count on, since they are the basis for your economic standpoint.
After you've got your list of incomes and expenses put together, it's time to determine exactly how your income works. Figure out how much you make per month through your job as well as any other payments that you can count on such as alimony or child support. Next comes the hard part: figuring out all of your expenses. Since you probably have many more different expenses than you do incomes, it's easy to overlook some expenses that you may partake in. Document them as best you can.
Now what you need to do is weigh your monthly income versus your monthly expenses. By doing this, you can determine pretty accurately whether you are posting revenues or expenses when all is said and done. Now that you know exactly where you stand in terms of monthly revenues, you need to create estimates for your expenses throughout a month. Since bills and needs can vary from month to month, do your best to determine a basic outline for what an expense should cost you.
The basic idea of your budget is now complete. From here, it's important to track your expenses as best you can, recording any time when you make a financial transaction, be it a down payment on a house or a candy bar at the store. By seeing exactly where your money is going, you can determine what aspects of your lifestyle you can trim to better suit your budget. Good luck, you can do it!