How to Make a Monthly Budget in 5 Simple Steps a10

The Only 5-Step Monthly Budget You Need

(Without Feeling Restricted or Overwhelmed)

Let’s be honest for a second.
The word budget doesn’t exactly feel inspiring.

It often sounds like:
“No fun.”
“No shopping.”
“No freedom.”

But here’s the truth no one tells you — a good monthly budget doesn’t limit your life.
It actually gives you more peace, more control, and fewer money-stress moments at the end of the month.

And no, you don’t need a finance degree or fancy spreadsheets to make one.

Let’s keep this simple.

Step 1: Get Clear on Your Monthly Income

Before you plan where your money goes, you need to know how much is coming in.

Write down all sources of income:

• Salary or paycheck
• Freelance or side income
• Any consistent extra income

Example:

• Main income: $3,200
• Side income: $600
• Total monthly income: $3,800

✨ Tip: If your income changes month to month, estimate on the lower side. It keeps your budget realistic and stress-free.

Step 2: List Your Fixed Expenses First

These are the expenses that stay mostly the same every month — the non-negotiables.

Common fixed expenses include:

• Rent or mortgage
• Utilities
• Internet & phone bills
• Insurance
• Subscriptions
• Loan or credit card payments

Example:

• Rent: $1,200
• Utilities & internet: $250
• Insurance & subscriptions: $200

Total fixed expenses: $1,650

This step is important because it shows you what portion of your income is already spoken for.

Step 3: Estimate Your Variable Spending (Be Honest Here)

This is where most budgets fall apart — not because people spend too much, but because they underestimate.

Variable expenses include:

• Groceries
• Eating out
• Coffee runs
• Shopping
• Gas or transport
• Small “treat yourself” purchases

Example:

• Groceries: $450
• Dining out & coffee: $250
• Gas/transport: $150
• Shopping & misc: $200

Total variable expenses: $1,050

✨ Tip: Checking your last 2–3 months of bank statements makes this step way easier — and way more accurate.

Step 4: Save First, Spend Second

This one small shift changes everything.

Most people say:
“I’ll save whatever is left at the end of the month.”

But usually… nothing is left.

Instead, decide your savings amount before you start spending.

Example:

• Monthly income: $3,800
• Savings goal: $400
• Available to spend: $3,400

Your savings can go toward:

• An emergency fund
• A savings account
• Investments
• A future goal (travel, home, freedom)

Even saving a small amount consistently builds confidence — and momentum.

Step 5: Use Your Budget as a Guide, Not a Punishment

A budget isn’t meant to make you feel guilty.

It’s not about cutting joy — it’s about spending intentionally.

Some months you’ll overspend.
Some months you’ll save more.
That’s normal.

Your budget should help you:
✔ Feel in control
✔ Reduce money anxiety
✔ Enjoy spending without regret

✨ Think of your budget as a supportive friend — not a strict rulebook.

Final Thoughts: Progress Beats Perfection

There is no such thing as a “perfect” budget.

There is only:

• Awareness
• Consistency
• Small improvements over time

If you know where your money goes and you’re saving even a little, you’re already ahead of most people.

Start simple.
Adjust as you go.
And give yourself grace.

💬 If you want, I can also help you with:

• A simple monthly budget template
• The 50/30/20 rule (made easy)
• A minimalist one-account budget method

Just tell me what you want next 💕