How to Create Budget
Learn how to create budget with our detailed step-by-step guide. Follow our easy instructions to get it done right.
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0 of 6 steps completedStep-by-Step Instructions
1 Step 1: Calculate Total Monthly Income
Step 1: Calculate Total Monthly Income
Add up all sources: salary, side income, investments after taxes to get true take-home amount.
Budgeting Workbook
Complete budget planning and tracking workbook
2 Step 2: Track All Expenses for One Month
Step 2: Track All Expenses for One Month
Record every purchase to understand where money actually goes - use app or spreadsheet.
YNAB Budgeting App
You Need A Budget annual subscription
Budget Tracking Spreadsheet
Excel template for expense tracking
3 Step 3: Categorize Expenses
Step 3: Categorize Expenses
Group spending into categories: housing, food, transportation, debt, savings, discretionary.
4 Step 4: Set Spending Limits by Category
Step 4: Set Spending Limits by Category
Allocate income to each category based on needs, priorities, and financial goals.
Budget Percentage Guide
Recommended spending percentages by category
5 Step 5: Include Savings and Debt Payoff
Step 5: Include Savings and Debt Payoff
Treat savings and debt payment as essential "expenses" - pay yourself first.
6 Step 6: Review and Adjust Monthly
Step 6: Review and Adjust Monthly
Compare actual spending to budget, identify problem areas, and adjust allocations as needed.
Monthly Budget Review Planner
Templates for budget review sessions
Cash Envelope System
Physical envelopes for cash-based budgeting