What a Budget Is

A budget is just a plan for your money.
It’s a way of looking at what money you have coming in (income) and what money you have going out (expenses), and then deciding ahead of time how you want to spend and save it.

Think of it like a map:

• Income = money coming in (paycheck, side jobs, etc.)

• Expenses = money going out (rent, groceries, gas, subscriptions, fun, etc.)

• Budget = your plan for how to use that money so you don’t run out and can reach goals.

How to Set One Up

Here’s a beginner-friendly way to do it:

1. Write down your income.

   • Example: You take home $2,500 a month after taxes.

2. List your expenses.
   Start with the most important (needs), then add wants:

   • Rent/mortgage: $900

   • Groceries: $300

   • Car + gas: $250

   • Utilities: $150

   • Subscriptions: $50

   • Fun/entertainment: $150

   • Savings: $200

3. Compare income to expenses.
   Add up your expenses. Is it less than what you make? Great. Is it more? Time to trim.

4. Adjust to match your priorities.

   • If you’re spending too much on “fun,” reduce it until the math works.

   • Always try to include at least a little savings.

How to Use Your Budget

• Track spending: Check what you actually spend each week. Compare it to what you planned in your budget.

• Stick to categories: If you gave yourself $150 for eating out and you’ve already spent it, you know you should stop for that month (or shift money from another category).

• Review monthly: Budgets aren’t “set it and forget it.” At the end of the month, see what worked and adjust for next month.

Tips to Make It Easy

• Start simple: just write things down on paper or in a phone note.

• Use free tools/apps (like Mint, Goodbudget, or even Google Sheets) to keep track.

• Don’t aim for “perfect.” A budget is just you telling your money where to go instead of wondering where it went.