It is easy to create a budget for your personal finances, but it is not as easy to always stick with it. For that reason, it might take you a few months before the total you are actually spending matches up with the recommended amount from your budget. This is okay if you are not in debt because there is no rush. However, if you have creditors calling your home at all hours of the day, it might be within your best interest to meet with a debt relief counselor or to schedule and appointment with your financial advisor.
I think it is best to keep a monthly budget instead of an annual one. This is because things change monthly. You might need to spend extra money for a holiday party in November and December, and so forth. So we are going to make a monthly budget. However, what you need to do is first consider all of your yearly bills. These are bills that you pay once a year only.