How do I make a budget that I can follow month to month?

There are a number of ways to create a budget. Presumably, you want to create a budget that allows you to live within your means, which is another way of saying that you want to make sure that you spend less than you earn so that you can save for the future and not have to debt-finance your lifestyle. To do this, you might want to "pay yourself first", which is another way of saying that you will first decide how much of your income to save (10%, 15%, 50%, etc.). Then focus on the big three--housing, food, transportation. The less you spend here, the more you'll have leftover for other other necessities (cell phone, insurance, healthcare, etc.) and wants. In thinking about your choices among the big three, recognize that if you live closer to your work/school, the less you'll need to spend on transportation. So paying more for housing close to school/work/grocery store/etc. might allow you to get by without a car and bike/walk/skate/subway/bus your way around your community and thus be better for your budget overall. Next think about those other necessities. Whatever is leftover is what you have to spend for extras like entertainment, travel, dining out, etc.

Keep in mind a few things:

• Your expenses will not be the same each month. Life happens. unexpected things happen. seasons change and the utility bill fluctuates. Or you might get a discount for making a payment one month that covers your car insurance for six months. To cover such an expense and benefit from the savings you might try to limit you extras that month or draw on your savings (and then replenish your savings in the subsequent 5 months with your usual pay-yourself-first savings + the amount you would have otherwise paid each month for the car insurance)
• Your income might not be the same each month. Depending on your job, you might have more or less hours worked, receive more or less tips, earn more or less in commissions in a given month. So even if your expenses are constant each month (they won't be!) you income may not be. If you can predict these fluctuations, its best to consider them in your monthly budget.
• One-time expenses reoccur. One month you might get a flat tire. another month the washing machine might spring a leak. the next month your dog might get bit by that other dog down the street. These are each one-off things. But in life, you will find that life has a way of giving you what might look like one-time expenses on a recurring basis. Leave some space over and above your pay-yourself-first savings.

You can use a spreadsheet or an online provide like Personal Capital or Mint to help you build a budget and monitor your fidelity to it. A budget is worthless if it is not monitored and adjustments made following that monitoring. If you're overspending your budget (and especially if you are overspending your income) revisit you expenses, acknowledge where you have underestimated and determine whether you need to adjust that budgeted item higher and thus reduce something else or whether you just need to be more focused on adhering to that item in the future. The quicker action is taken to address the item, the less painful the adjustment will be.

But even where you are within budget, you should always go back periodically and ask yourself something like, "if i were to build a budget again from scratch with a clean sheet of paper to reflect what I really value what would it look like?" Some expenses can be adjusted quickly. Others, like your residence might not be something you can reduce tomorrow, but if you think a cheaper place would free up money for more savings (and thus provide more financial stability and peace of mind) or other things you value or that you would like a place closer to town that might allow you to sell your car, that is something you can work towards.