How do I create a realistic monthly budget that works?

Start by tracking every dollar you spend for one month before building anything. Most budgets fail because they're based on what people wish they spent, not reality. Pull your bank and credit card statements and categorize everything: fixed expenses like rent and car payments, then variable ones like groceries, dining, and entertainment. Once you see your actual spending, use your take-home pay as the baseline and allocate every dollar intentionally. A common starting framework is 50% to needs, 30% to wants, and 20% to savings or debt. Build in a small buffer for unexpected costs because something always comes up. Review and adjust monthly for the first few months since your first budget is always a rough draft, not a finished product.