How to budget and avoid financial collapse

We all talk about budgeting and cutting our budgets in difficult economic times, but do we really know how to budget?
Budgeting is the best way to control your spending and reach your financial goals and it can save you from financial collapse in the difficult financial times we live in. Everybody is feeling the pinch of higher food prices and interest rates, while even the middle class is starting to find it difficult to afford their lifestyles.
The past few years have taught consumers various lessons and if there is one you can take away from this turbulent time, it is the importance of a budget to combat the continuous financial stress we have to deal with daily.
Here are six steps to compile a budget you can stick to.