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Step 1
In setting up a budget the most important thing to remember is that the income should almost be more than the expenses. This seems like a obvious statement, but many people find themselves with more monthly expenses that the monthly income. One of the first steps is to find out what you're actually bringing home every month after taxes, social security and any company retirement plan that you might be involved with. For most college grads the tax rate will be somewhere between 12%-18% depending on salary, and social security will take out 6.2% with Medicare at 1.45%.
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Step 2
Once you've calculated your take home income (or received your first pay-check which is a good way to find out your take home) you should then start to tally up your expenses to get a better idea of how you currently stand financially. Many graduates have not paid for all of their expenses in the past and sometimes overlook new expenses like insurance (car, life, health, dental) and bills that aren't divided among roommates anymore. This again depends on what you're use to paying for, but for many the idea of taking on their cell phone bill, gym membership, etc. can be an eye-opening experience.
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Step 3
Once you have all of your new expenses in order find out what it will cost each month to cover these and see if your income will be enough to cover it. For many people this is when they truly realize that they're living beyond their means financial and changes must occur in order to stay afloat. For more information on helpful expenses saving tips check out the ehow article of "How to cut expenses in order to live within your means".
