Carrie is a recent college grad with her first full-time job and is learning about how to manage her money. She tries to save money each month, but at times ignores her finances because she gets easily frustrated and overwhelmed with them. She has just had a curveball thrown her way with an increase in rent, so she decides to call her trusted cousin, Bryce, who has a strong understanding of money management.

Carrie: Hi Bryce! Do you have time to help me with a money issue?

Bryce: Yeah! Whats going on?

Carrie: My landlord just called to let me know my rent is going to increase $300 in the next two months! He said something about an increase in HOA fees and taxes, so he has to increase the rent. But I love this apartment! It is close to work, close to my boyfriend, and has so many great amenities. With my student loans and other bills, I cant afford to continue living here!

Bryce: Thats tough! But you can definitely make it work. Ive got some errands to do near your neighborhood later, so I can come over beforehand and we can create a budget to see where you can come up with the extra money! Go ahead and gather all of your financial documents together and Ill be over soon.

Carrie: Budget? Ive never created a budget before, so it intimidates me. Plus it seems like a lot of work. But I appreciate your help so much!

Bryce arrived within 30 minutes and was ready to help Carrie get started on organizing her budget. In order to figure out if you can afford this increase in rent, you have to create a budget, Bryce instructed.

What response should Bryce say to Carries last question and comment? What is the importance of creating a budget? What documents and information will Bryce need to see in order to help Carrie create a personal budget?