5 tips for creating a budget to support your financial goals

Whether you want to pay off debt, start a rainy day fund or save for a family trip, budgeting is the first step toward reaching your financial goals.

Creating a budget is much like trying to eat better or exercise more — everyone tells you it’s good for you, but it’s hard to get into the habit, said Colleen McCreary, consumer financial advocate at Credit Karma.

“A lot of people think it’s over-complicated and a hard thing to do,” McCreary said. “Much like going to the gym, the hardest part is showing up, so you just have to decide that you’re going to try it out.”

Here are five important steps when you’re ready to create a budget:

1. WRITE IT DOWN

Writing down all of your expenses is key, said Elena Pelayo, educator at How Money Works, a financial literacy organization.

She suggests recording every penny that you spend rather than