It’s a new year, and if you are like most people, you thinking of how to improve your budget for 2010. For someone with a home business, budgeting is especially important. This is because you may not have a steady income each month. Some months you may make more than other months. As a result, budgeting becomes especially important. Here is a simple process that can help you budget for the new year:

1. Look at your total earnings for last year. Divide that by 12 to get a monthly average.

2. Look at your total expenses for last year. Divide that by 12 to get a feel for your monthly obligations.

3. Create a monthly budget based on your income and expenses.

4. On months when you actually make more than your average income, put the money in a high yield savings accounts.

5. On months when you fall short of the average income, you can use what you have saved up to make up the difference.

This process is easily done when you have personal finance software, or bookkeeping software. You can create a report that breaks it all down for you, including allowing you to see categories (entertainment, eating out, etc.) where you can cut back if necessary. If you don’t have personal finance software, you should consider getting some in order to more easily track your cash flow.