Creating and maintaining a household budget is crucial for financial stability and achieving long-term goals. Start by tracking all income sources and expenses for a month to get a clear picture of your financial situation. Categorize expenses into fixed (rent, utilities) and variable (groceries, entertainment) costs. Set realistic goals for saving and debt reduction. Use the 50/30/20 rule as a guideline: allocate 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. Regularly review and adjust your budget to accommodate life changes. Consider using budgeting apps or spreadsheets to simplify tracking. Involve all household members in the budgeting process to ensure buy-in and shared responsibility.