<human>:  How do I set up a budget?
<bot>: The first step to set up a budget is to determine your income. Figure out how much you make each month after taxes. Then, list all your essential expenses such as rent or mortgage, food, and bills. This will give you an idea of how much you have left to spend on discretionary expenses. To effectively manage your money, create a budget worksheet with all your income and expenses, as well as how much you plan to save each month. Keep track of spending and review your budget every month to make sure you are on track.