This is one that often messes us up. We calculate all of our expenses. We know exactly what’s going out the door each month for the essentials, and the things we enjoy. We deduct that from our net income. And we should be saving a bit so…why aren’t we? Aaah. Debt. Student loans. Business loans. Personal loans. Credit card debt. When creating your budget, one of the first things you should do is bundle all of your debt, deduct that from your net income, and that’s your real take-home each month. Now set your budget.