One of the most important financial habits you need to have is knowing how to create a budget. Benjamin Franklin supposedly once said, “If you fail to plan, you are planning to fail.” Simply defined, a budget is the plan on how to spend your money wisely. The goal is to spend less than what you earn so you won’t fall into debt. Having a financial plan will guide you in reaching your goals.

This infographic will give you the steps on how to create a budget.