How do I create a realistic monthly budget from scratch?

Start by tracking your actual income after taxes, then list every expense you can think of from the past few months using bank statements and credit card records. Categorize them into fixed expenses like rent and car payments, and variable ones like groceries, dining out, and entertainment. Add up what you actually spend, not what you wish you spent. Then compare total expenses to income. If you're overspending, cut variable categories first since they're most flexible. A common starting framework is the 50/30/20 rule: 50% for needs, 30% for wants, 20% for savings and debt. Revisit the budget after the first month because your estimates will almost certainly be off, and adjust based on real numbers rather than guesses.