In the financial world, BUDGET is one of the most common you may encounter. And often the most neglected in personal finance. Personally, I find it hard to teach budgeting to anyone most especially when they have lived their lives without needing to create one. Majority of people who already have their own income find it hard to budget. But the problem is this what makes their personal finance out of control. They spend here, spend there and spend everywhere because they set no limits. They do not define boundaries with what they can only afford. The result? Debt. And most of the time - too much debt. I am a budget man. Even during the time when I don't have my own income but the allowance from my parents, I already budget. And I only follow three easy steps to begin this tedious task called budgeting and I think it is worth sharing to you. The A-B-C of budgetting A stands for ALLOCATE. Determine your needs and wants and separate to each item. Allocate a justified portion of your monthly income to each item. It is very advisable to allocate bigger amount to your needs and just a little percent to your wants. Do not forget to pay yourself by putting a big slice of your salary to savings, investment, insurance or business. B stands for BUY IN CASH. BUY in CASH as much as possible. This way you have total control over your budget. Paying via your credit card can sometimes overshoot your budget because your credit limit is possibly twice or thrice higher than your monthly salary. If you really want to use your credit card, make sure that what your spend using your credit card is payable with what you currently have. C stands for CREATE. Most of the time we only budget virtually. When we say 'virtually', we only have this in our mind and often times we forget. A little print-out will do. It will help if you can have a presentable list of your budget. Make sure you can always see it. Post it in your wall at your room and have a small copy in your wallet. Honestly, sometimes I still spend out of budget and it is putting myself in debt. We all want to be financially free and that means getting out of debt and having a steady stream of multiple incomes. Have a budget and take control of your personal finance. That way, you can easily achieve what everyone wants to - financial freedom.