How to Budget

Budgeting doesn't have to be complicated. At its core, a budget is simply a plan for your money - knowing what comes in, what goes out, and making sure you're spending on what matters most to you.

Step 1: Know Your Income

Start with how much money you actually bring home each month (after taxes). This is your starting point. If your income varies, use the average of the last 3 months.

Step 2: Track Your Spending

You can't fix what you don't measure. For at least one month, track every dollar you spend. The easiest way? Upload your bank statement to a tool like Just Budget that categorizes everything automatically.

Step 3: Categorize Your Expenses

Group your spending into categories:

• Needs: Rent, utilities, groceries, insurance, minimum debt payments
• Wants: Dining out, entertainment, subscriptions, shopping
• Savings: Emergency fund, retirement, investments

Step 4: Choose a Budgeting Method

The 50/30/20 Rule

A simple framework: 50% on needs, 30% on wants, 20% on savings. It's flexible and easy to follow.

Zero-Based Budget

Give every dollar a job. Income minus expenses should equal zero. Great for people who want total control.

Pay Yourself First

Automate savings right when you get paid, then spend what's left guilt-free.

Step 5: Cut the Waste

Look for "frivolous" spending - things that don't bring you real value:

• Subscriptions you forgot about
• Food delivery when you have groceries at home
• Impulse purchases on Amazon
• Daily coffee runs that add up to $150+/month

Step 6: Stick to It

The best budget is one you can actually follow. Review your budget weekly, adjust as needed, and don't beat yourself up over small slip-ups. Progress, not perfection.