How To Make A Budget

How to make a budget is a question many people ask. And for many, it can feel like an overwhelming task.

Creating and keeping a budget is highly recommended and important for all households. And the good news is… it doesn’t have to be complicated.

Having a budget will help you see exactly where your money is going and help you to determine and create a plan for getting your money where you want it to go.

If you are wondering how to make a budget, I am excited to show you easy steps to getting there!

I can show you exactly how to create a budget that will help you and your family achieve your financial goals.

What is a Household Budget?

A household budget is simply a plan that determines how much money you can spend on each thing (a bill, expense, etc) each month depending on how much income you have.

In other words, a budget is simply:


When you create a budget, you are making sure that your expenses do not cost more than your income.

Having a budget helps you to trim expenses as needed to ensure you’re not spending beyond your means or goals.

Related: Get Your Own Budget Workbook

Steps to Setting Up a Simple Household Budget

1. Make a list of all of your monthly expenses

An expense is anything that costs you money each month.

This includes your bills (mortgage, car payment, insurance, cellphone bill…) as well as your other expenses such as groceries, entertainment, and eating out.

In order to know how much money you need each month, you need to first establish your monthly expenses.

Related: Understanding Fixed vs Variable Expenses

Take time to make a list of all of your expenses and their cost each month.

Additional tip: if you have expenses that are paid at schedules other than monthly, calculate the monthly amount necessary to pay those expenses. For example, if your auto insurance is due every 6 months, divide your total cost by 6 and that will give you the total monthly amount.

2. Calculate the total of all your monthly expenses

Once you have your list of expenses, add the amounts together.

This total amount will be your total monthly expenses.

In other words, this is the amount of money leaving your account each month in order to cover your expenses.

How to Make a Budget

3. Determine your average monthly income

Now that you know the cost of your monthly expenses, it is time to calculate your total monthly income.

To do this, add together all of the money that comes into your family every month.

How to make a budget printables

This includes any salaries, paychecks, or side hustles that bring in money for both you and your spouse.

4. Find Your Monthly Remaining Funds

Once you have your total monthly income and your total monthly expenses, you can calculate your remaining funds. Simply use the following equation:

[Total Estimated Income] – [Total Estimated Expenses] =

Your Remaining Funds

Your remaining funds is the money available at the end of each month AFTER all expenses have been paid.

These remaining funds could be put towards paying off debt, creating an emergency fund, or saving for a home renovation project.

Related: The Importance of Setting Financial Goals

How to make a budget printable

Additional Note: For some families, the remaining funds may actually be in the negative. If this is the case, work will need to be completed within the budget to make sure there is a positive amount at the end of the month.

What’s Next?

Once you have determined your remaining funds each month you will have to decide how you would like to use them.

For guidance on what steps to take next, sign up for my Free 5 Day Well Planned Budget Email Course.

This course will guide you through a step-by-step process of creating a budget, setting goals, and developing a plan to stick with your budget.

If you are looking for more guidance on setting up your household budget AND sticking with it, sign up below to take part in my FREE 5-day Well Planned Budget Email Course.

This email course will take you on a more in-depth, step-by-step, journey to creating your budget, adjusting your budget, and STICKING WITH it.

By signing up you will also get access to my Well Planned Budget Mini Bundle (for free!). This bundle includes five budgeting tools to help you through the process.



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