Human: What are good steps to take to create an effective budget? Assistant: 

1. Establish your financial goals and determine how much you need to save each month.
2. Evaluate your income, expenses and debts.
3. Calculate how much you can realistically save each month.
4. Track your spending and create a budget that reflects your income and expenses.
5. Identify areas where you can cut back on spending and make adjustments accordingly.
6. Set aside money each month for emergency needs.
7. Make sure to review and update your budget regularly.