For people who have a difficult time managing their money, adhering to a strict budget can help them to account for every dollar spent. It's nearly impossible to keep track of your money otherwise, since it's so easy to spend. You may not think that you have enough money to pay all of your bills, but budgeting will help you to realize that you can pay all of your bills and still have money left over for extras like entertainment, emergencies and saving.

You need to make a complete list of everything that you pay on a regular basis. Whether it's a weekly bill, bi-weekly, or monthly bill, it needs to be included in this list. Be sure to include approximately how much you spend on entertainment on a monthly basis, as well as for gas for your car, car maintenance, etc.

The next step is to figure out your total bring-home pay each month. You need to also include your spouse's and anyone else's income who contributes to the household.

After the first two steps are completed, now is the time to figure out how much money is left over after paying all of your regular bills. Please see the example below.

Total monthly income from all sources - $3450

Mortgage payment (including taxes and insurance) - $1100

Heating bill - $50

Electric - $50

Water - $25

Phone - $50

Car insurance - $50

Gas for car - $150

Groceries - $300

Car payment - $250

Credit cards - $100

Entertainment - $100

Total = $2225 - which leaves this family with a total of $1225 a month. This is a nice amount to have left over because it gives them the freedom to put as much as they want into a savings account, for any purpose that they choose. It's also good because unexpected costs are always arising: your sewer could backup, requiring you to pay a plumber, your car could need unexpected repairs, or your dog could get sick and have to be taken to a vet. You don't want to be caught short when situations like these do arise, because if you are, you may experience great distress.

It's so easy to spend a few dollars here and there before realizing that all the money is gone. In order for a budget to help you to gain control over your finances, you need to keep careful records of your spending habits. Let's say, for example, that you have $500 dollars a month left after paying bills. Instead of heading to the mall with the entire $500, put whatever amount you choose into a savings account, and determine how much of what's leftover you can comfortably spend without experiencing a financial hardship. When you do make purchases at the mall, keep track of your spending and save your receipts, being careful not to exceed the amount you determined that you could spend comfortably.

In order to make sure that all of your bills are always paid, it's important to pay them in the order of priority. Your mortgage or rent should always be the first thing that you pay each month—you've got to have a place to live. Secondly, you need to pay your utilities, to prevent being without heat in the winter or air conditioning in the summer. If you need to, you can always pay a portion of your utility bill from time to time. Although most utility companies prefer to be paid in-full each month, many will not disconnect your service if you're making an effort to pay at least a small amount each month.

If after paying all of your monthly bills you have absolutely no money left over, or either not enough to pay all of your bills, then you must take action immediately. If you can work overtime at your job, then by all means, do so. If you can't, then perhaps getting a second job is a good idea. You can't live comfortably without enough money, so ensuring that your income adequately covers all of your necessary expenses and leaves you with extra is imperative for a healthy and happy financial future.

If you receive a bonus, overtime pay, or a tax refund, ensuring that all of your bills are caught up is important. If after determining that all of your bills are caught up and you still have money left over, then by all means, splurge a little. Buy yourself a new outfit, take a mini vacation, or have your nails done. You've earned it with all your hard work.

You should notice a big difference in the amount of money that you have left each month after adhering to a strict budget for a while. Pretty soon, instead of appearing to be a big hassle, you will realize that budgeting is a great idea that probably should have been utilized sooner.

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