Once you figure out your income, the next step of creating a budget is allocating your money into categories like ‘living expenses,’ ‘food,’ ‘entertainment,’ etc. Make sure that you don’t shortchange any of these categories. If your grocery expenses average $80 to $100 a week, for example, start by budgeting $400 to $500 for a month. Remember, this can always be adjusted later when you know what you spend.