The budgeting video case discussing personal finance recommended the first step in budgeting as calculating or figuring out your net income (take-home pay). This means determining the total amount of money you actually receive after taxes and other deductions, which is the amount available for spending and saving. Knowing your net income helps avoid overspending by giving you a clear picture of how much money you truly have each pay period
. This step is foundational because it sets the baseline for tracking and managing your expenses effectively. Once you know your net income, you can proceed to track your spending, categorize expenses, and create a budget plan accordingly
