Bills are tight. Money is slowly coming in yet so much more needs to be dispensed. The art of balancing an income becomes more like a job than a necessity. Yet to live, one has to even up with a livable budget...

Successful money management starts with creating a budget. Managing your money doesn't have to be the hardest thing if you apply yourself. Knowing how much you have and what you're spending your money on can carry you past trying times. Let's first determine what a budget is.

Budgets consist of two elements, expenses and income. The key to a budget is balancing your expenses at or below your income so that you break even. While it may sound simple, it does have its moments. So let's start with compiling your expenses. Here is a sample of expenses a typical family has:

• Housing & Utilities -Mortgage payment or rent, insurance, property taxes, electricity, natural gas, and water.
• Household Supplies -Groceries, clothing, cleaning and other supplies, home improvement tasks, and repairs.
• Transportation Costs -Gas, car payments, insurance, maintenance, repairs, and traveling costs (Airfare, bus, rental cars, etc.)
• Entertainment -Eating out, cable service, movies, family night outings, and parties.
• Communication -Telephone, cellular phones, Internet service, and telephone answering services.
• Health, Beauty, and Fitness -Haircuts, perms, make-up, health insurance, dietary products, nutritional supplements, and gymnasium memberships.
• Other Expenses -Credit card payments, childcare, allowances for children, investments, vacation, church tithes, gifts during holidays, snacks, and spending money.

Anything you spend money on should be included in your expense report. It's best to write down all purchases in a notebook so that you won't miss anything. Once this is done, add up the total in a monthly amount. This is where you have to determine if you're spending too much. If what you're spending each month is larger than what you're taking home as income, then you must cut back on some expenses. This is why it's so important to write all your spending habits down.

Now let's focus on trimming off the excess. First, subtract your income from your expenses. If for example your income is $1500 per month and your expenses is greater than the amount, then you will have to figure out what are you willing to sacrifice without in order to stick to a budget. After looking at your expenses, you'll notice a few things you can live without. Some suggestions include:

• Eliminating cable and switching to a free Internet service provider.
• Turn off all lights you don't use frequently
• Turn off the air and heat if you're not home
• Set your settings for air and heat at a comfortable position and keep it there
• Turn the level of water for washing machine and dishwasher
• Cut back on long distance calls
• Cut back on eating out. Buy your food in bulk to save more money
• Shop around for cheaper auto and home insurance
• Carpool to work and other activities

You can find other areas to save money. Once you determine how much you're spending, it will be easier to se where your money is going. You can figure out which bills that need immediate attention and others that can be delayed until the end of the month. Don't let circumstantial situations dictate where your money is going. If you wisely list where your income is being delegated, then living on a budget can be the goal you can reach.