To make a basic budget worksheet, you can use a spreadsheet program such as Google Sheets or a piece of paper and pencil. (Getty Images)

Making a household budget is one of the most important steps toward getting your spending under control and building a strong financial foundation for you and your family. It helps you prioritize spending, track where your money is going, pay off debts, set long term plans and carry them through.

Making a basic budget worksheet is easy. You can do it in a spreadsheet program like Google Sheets or with a piece of paper and pencil. The steps are the same either way. Here's how to make a household budget worksheet:

List your income.

Add your expenses.

Calculate your net income.

Adjust your expenses.

Track your spending.

Read on for additional information on each step.

List Your Income

Write down each source of income that you bring home in a month. Focus on how much you reliably bring home, so don't include irregular income such as overtime pay. When you earn extra money, you should apply it toward big financial goals such as paying off debts quickly.

What if your income fluctuates a lot? This is the case for many freelancers and entrepreneurs. In that case, make an estimate of what your average monthly income is, then subtract 10 percent, so you're not consistently falling short on income. You may also want to consider writing a budget for a period longer than one month.

When writing this down, list the type of income in a left hand column. For example, label a column as "His weekly paycheck times four" or "Her bimonthly paycheck times two." Write down the actual amount of each item in the right hand column. When you've listed everything, add up the numbers in the right hand column. That's how much you have to work with.

Add Your Expenses

Don't worry about ideal spending habits yet. Instead, focus on what you spend. You can start by making a list of your regular monthly bills, rent, mortgage, utilities, internet, cable, Netflix and so on. As with your income, list what the item is on the left and how much it costs on the right.

After that, pull out your last few bank statements and credit card statements and start listing those expenses. Use the real numbers. Don't try to hide anything. You'll want to group together common expenses, so if you stop at Starbucks twice a week, add up all of those visits and put them under a single "Starbucks" item.

You'll want these numbers to be pretty close to your average spending, so aim to do this for the last three months in total, then divide each number by three. That way, something exceptional from last month doesn't skew things too much.

Add those numbers and you have your actual expenses for the month.

Calculate Your Net Income

Now comes the moment of truth. You should calculate your net income, which is how much you have left from your monthly income after your monthly expenses. Take your total income and subtract your expenses. Ideally, that remaining number should be positive. If it's not, that means, in an average month, you're racking up debt, and that's not a good place to be.

Adjust Your Expenses

From there, you'll want to adjust your expenses. Go through that list of expenses and ask yourself which ones you can realistically adjust downward. Let's say you spend $750 a month at the grocery store and $250 a month eating out. Maybe you can get more careful with your food spending and lower that to $600 a month at the store and $200 a month eating out. Maybe you spent $200 a month on your hobbies. In that case, try aiming for $150 a month.

Don't try to radically adjust your expenses, or else you'll find it miserable and overly difficult. Instead, make smaller reductions on the order of 20 percent or 30 percent on the expenses you can easily cut.

You also may want to go through your regular bills and look for ways to lower them. You can lower your monthly energy bill by keeping the thermostat a little lower in the winter and higher in the summer. You might be able to cut your cable bill entirely if you already have Netflix and an antenna.

Track Your Spending

Once you've decided on some changes, track your spending for the next month. Focus on the categories that are related to your behavior and your spending choices, such as grocery spending, eating out, entertainment spending and hobby spending. Track every dime you spend in those categories and try to keep your expenses for the month below the target you want to hit.

If you manage to pull it off, congratulations. You should be spending less than you earn and can use that money to build an emergency fund, pay off debts or start contributing to retirement.

If you find it difficult, sit down and reconsider whether your target numbers are realistic. You may have set your sights too high in one particular category, so don't be afraid to adjust and try again.