How to make a monthly budget

Every step

1. 1

   Set the income amount

   Add the take-home income you can reasonably count on this month. List irregular or uncertain income separately until it arrives.

2. 2

   List fixed bills

   Record each bill, amount, due date, and payment method. Include housing, utilities, insurance, minimum debt payments, and subscriptions.

3. 3

   Review variable spending

   Look at the previous month and total food, transportation, household, personal, and family spending. Use actual transactions instead of guesses.

4. 4

   Plan for upcoming costs

   Add known one-time expenses and set aside smaller amounts for predictable costs such as repairs, school needs, or annual renewals.

5. 5

   Assign the remaining money

   Choose weekly limits for flexible categories and set a savings amount that fits the real cash available after essentials.

6. 6

   Match bills to pay dates

   Use a calendar to check that money will be available before each due date. Contact providers early if a payment date needs to change.

7. 7

   Add a buffer

   Keep a small amount unassigned for timing differences and unexpected essentials. Do not budget the same dollar twice.

8. 8

   Review weekly

   Compare the plan with actual spending once a week. Adjust the next week’s amounts and record what needs to change next month.