What is the best way to create a budget?

Question

A Put everything into one jar and withdraw from it as needed.
B Divide your money into categories according to what the money is for.
C Divide your money in half. Save half and spend half.
D Put $20 into savings, $20 into IOU, and the rest into spending.

Answer 1

B Divide your money into categories according to what the money is for.