How to Create a Monthly Budget in 7 Simple Steps

Budgeting doesn't have to be complicated. With a simple plan, you can feel more confident about where your money is going, reduce financial stress, and work toward your savings goals. When you are just starting out with a plan, write down everything below on a piece of paper, or you can use a similar template as shown below.

1. Calculate Your Monthly Income
List all reliable income sources, such as paychecks, side hustles, or other regular income.

2. List Your Fixed Expenses
Examples include:
Mortgage or rent
Utilities
Insurance
Car payment
Internet
Phone
Childcare

3. Estimate Variable Expenses
Include categories like:
Groceries
Gas
Dining out
Clothing
Entertainment
Household supplies

4. Set Savings Goals
Emergency fund
Vacation
Christmas
Home improvements
Retirement

5. Track Every Dollar
Review your spending regularly so you can spot patterns and adjust if needed.

6. Review Your Budget Weekly
A short weekly check-in can help you stay on track instead of waiting until the end of the month.

7. Adjust as Life Changes
Budgets are meant to be flexible. Update yours when your income or expenses change.

The best budget is one that fits your family's needs and help you make steady progress toward your goals. Small, consistent habits often have a bigger impact than trying to make drastic changes all at once. 

~Happy budgeting!

On the right side is an example of an income and expense list for a month. Below shows all income and expenses plugged in on a template.