Keep in mind that the purpose of budgeting is to get to savings. You do not need a complicated budget; instead, focus on keeping track of your spending. Then just subtract that from your disposable income to get your cash flow. You can easily track your spending with a simple spreadsheet. For a young person, a budget like the example below is all you should need (until you make your first million, that is).
Create a budget like the one above to start keeping track of your spending, then track your spending for the month and enter it in the actual column. Next, create a revised budget for month number two based on your actual experience. If you see that your net cash flow is zero or negative, look at the actual spending for month number one and decide where you can cut back. Entertainment is the easiest place to cut spending.
For a real-world perspective, I asked a student of mine to create the monthly budget below for when he is at college.
