Your balance sheet is negative because the value of your house just dropped by a significant amount . It looks like major lifestyle changes are going to have to occur with few or no options. If this is your case, it is time for financial counseling and aide. It may be time to start again with the knowledge that you must learn to use and rely on the messages from your budget and your balance sheet. Keep them both in the black and never go back. The one concept that is most important and is the same for both your budget setup and your balance sheet is that the grand total on the left side should be greater than the total on the right side. In your personal budget worksheet, your income should always exceed your expenses. For balance sheet items, your total assets should exceed your liabilities. Any other scenario means that you need to take corrective action. The most important step to make a personal budget is to just get started. Putting it off and procrastinating just delays securing your financial well being. Patient persistence is the key to taking back control of your money and once you do a budget will be a permanent part of your life.