Christine Parker: Budgeting can be a very rewarding process, particularly when it relieves the stress that comes from worrying about how to make ends meet. It also frees up cash to put toward goals that will improve your life.

There are four important steps to creating a budget. The first step is to understand the definition of a budget. A budget is a snapshot of your current finances and includes a detailed list of what your income is and an equally detailed list of how much you're spending and where you're spending it.

At the same time, a budget is a plan for the future spending, the spending you expect to do and also how you'll cover the unexpected cost that have a nasty way of cropping up in life.

The next step is to calculate your income and expenses. To create an effective budget you simply need to figure out what money you have coming in and where it's going out.

The third step is to take financial control and trim your expenses. You may find that the very process of creating a budget will raise awareness of your spending habits and prompt you to make changes.

The last step is to reduce your debt. Many people who have a hard time sticking to a budget or struggling to keep their spending under control are burdened with debt. Until they get rid of the debt, their financial goals will be on hold.

Remember, budgeting can be a rewarding process particularly when the money you save is put towards your future, long term goals that will improve your quality of life.