I start with how much money comes in — that’s all my income from my job and any other sources. Then I list how much money goes out — that’s all my expenses like rent, bills, groceries, and everything I pay for each month. A budget shows these two things side by side so you can see how your money flows. Once I subtract my expenses from my income, the number left over is the gap — this tells me how much I have left after paying everything. If I have money left over, I decide where it should go, li