Feel like you’re drowning from the weight of your finances?

Dreaming of the day when you break the paycheck to paycheck cycle and can say you’re debt-free, but feel paralyzed because you don’t know where to begin?

Do not fear! In this post, I will teach you how to make a budget that works for you! 

Budgeting is more than jotting down your bills on a calendar and hoping they get paid. That is why we are breaking this budget system all the way down from start to finish! 

And if you still need more… I have created the Beginner’s Budget Blueprint course that goes into more depth about budgeting and improving your finances, which you can snag here or at the end of this post! 

Organize Your Finances, Track Expenses + Review Money Habits

To create your budget, you must organize your finances, track expenses, and review your money habits. 

This step is critical to starting a budget because it tells you the bills you have due and when, how much you spend on food and other needs, and it also shows you where the rest of your money is going. 

This is an excellent starting place to find out how much you bring in and how much you spend. 

So, how do you do that?

First, download my free budgeting worksheets.

Secondly, get statements for every account you have. 

Pro-tip: I recommend having a bills account and a separate spending account. Too many accounts can make things difficult when beginning to budget! 

I recommend getting at least 3 or more months of statements when you begin your budgeting journey.

When I realized that our home was in preforeclosure in May of 2023, I got 6 months of statements because we were behind on bills.

Next, comb through your statements and use the bills organizer template to write down your monthly expenses and bills.

Take note of the amounts and dates that your bills are due. Confirm the due dates by logging into your accounts for each expense!

You will use this data later to set up your budget, so write down anything important and keep updating this as you need!

Also, jot down recurring expenses like food, gas, and your income at this time! 

Identify + Break Down Your Income 

By now, you know approximately how much you bring in monthly because we’ve looked over our statements.

Typically, people are in one of two categories when it comes to their income: 

1. You know exactly how much you make and you get paid consistently. 

This is usually those on salary or those who work a job where overtime is limited, and you work the same hours each pay period.

Your pay may fluctuate some, but generally, you know how much you’ll make for the month and when you’ll be paid.

Being in this group makes learning how to budget super easy!

2. You may or may not get paid regularly. Your income can fluctuate greatly.

Usually, those in the service industry (Any other bartenders/servers here?!) or those who work on commission fall into this category.

Because of this fluctuation in income, you may feel like budgeting is pointless or too hard, but I can assure you it’s not.

…And if you’re like us, you have both types of income earners in your household and budget. 

For any income type, find your average or minimum paycheck total. 

By basing your budget on your minimum income, you create your budget on a solid foundation. 

Now that we’ve found your income per pay period, it’s time to build your budget!