“A budget is telling your money where to go instead of wondering where it went." - Dave Ramsey, Total Money Makeover
a budget is a plan for your money
A budget helps you plan every dollar that comes in and goes out. It gives your money purpose and puts you in control.
Read through this short guide and take our quiz at the end!
Read through this short guide and take our quiz at the end!
How to create a budget in 5 steps
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1. List your income: Include all expected income for the month—paychecks, side hustles, etc. For irregular income, use your lowest monthly average.
2. List your expenses: Review your bank statements to list all monthly expenses. Focus on giving, saving, essentials (like housing and food), and extras. 3. Subtract expenses from income: Your income minus expenses should equal zero—a zero-based budget. Every dollar gets a job. Leave a small buffer in your account. 4. Track your transactions: Track all income and expenses throughout the month. This helps prevent overspending and keeps you accountable. 5. Make a new budget monthly: Each month is different, so adjust your budget for seasonal expenses or upcoming changes |
Be sure to cover your '4 walls' first when filling out expenses. These are your most basic expenses you need to cover to keep your household going. Call your utility companies right away if you are, or think you will be, falling behind.
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Tracking expenses: How & Why
How:
- Log all income and spending.
- Use a regular routine—daily, weekly, or right after a purchase.
- Premium apps like EveryDollar can sync with your bank for easier tracking.
Why it matters:
- Keeps you accountable.
- Helps avoid overspending.
- Reinforces good financial habits.
- Allows for timely adjustments to meet goals.
Budgeting for Your money goals
1. Identify your goal: Pick one goal to focus on - debt payoff, savings, or emergency fund.
2. Make a plan: Use savings fund to save monthly for big expenses. Try the debt snowball method to eliminate debt fast.
3. Free up money:
2. Make a plan: Use savings fund to save monthly for big expenses. Try the debt snowball method to eliminate debt fast.
3. Free up money:
- Increase income (side hustles, sell items)
- Cut expenses
- Budget with EveryDollar or other budgeting app to find hidden money.
Bonus budget tips
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accountability & motivation
Accountability partner: Having someone to check in with helps you stay on track—especially early on.
Stay motivated:
Stay motivated:
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take the quiz
Click here to take the English quiz if it does not display below.
Toma el cuestionario en español
Want to go deeper? A monthly budget is just a plan. A paycheck planner is where the magic really happens.
Download the monthly budget and paycheck planner to plan for your next month's budget!
Toma el cuestionario en español
Want to go deeper? A monthly budget is just a plan. A paycheck planner is where the magic really happens.
Download the monthly budget and paycheck planner to plan for your next month's budget!
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