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A person can never truly consider himself as a responsible and wise adult until he learns how to manage money and debt properly. Both are closely related, but money is infinitely more welcome than debts.

As a working adult, each of us is expected to learn to budget monthly salaries properly. This means prioritizing the most important and necessary expenditures first and putting the unnecessary ones second.

To start making your budget, identify all your sources of income first and tally your total monthly earnings. This will give you a clear picture of how much you have to work with.

The next thing to do is create another list, this time consisting of the permanent expenditures that you cannot afford to miss. Include here your monthly rent, phone service bills, insurance payments, monthly school tuition, and other fixed bills. For electricity and water bills, estimate your maximum monthly consumption. Do the same for transportation expenses. These will fall under your fixed expenses-meaning, you will allocate a portion of your money specifically for them.

Next, list a category for your variable expenses. These consist of your wants or the things you can do without for the month. Some people also include here the budget for food because even though it is a primary need, they can still adjust their consumption or at least buy the less expensive food items.

If you follow your budget each month, you won't have problems of overspending, especially on items that aren't necessarily important. Money and debt problems would also likely decrease.