Watch: How to make a budget
Learn the basics in under 5 minutes
Starting a budget doesn't have to be complicated. Watch this quick video for the core steps that set you up for success.
How to make a budget: A beginner's guide
If you've ever reached the end of the month wondering where your money went, a budget can change that. It doesn't have to be complicated or restrictive—a good budget simply gives your money direction, so you can spend, save and give in ways that reflect what matters most to you. This guide walks you through how to make a budget step by step, with free tools and resources to help you get started today.
A young couple is on the kitchen counter in and they are using a laptop for home budgeting
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6 steps to make a budget
Step 1: Calculate your take-home income. Start with what actually hits your bank account each month—your net income after taxes, insurance, and other deductions. If your income varies, use a conservative average based on your last three to six months.
Step 2: List your fixed expenses. Fixed expenses stay the same each month: rent or mortgage, car payments, insurance premiums, and subscriptions. Write them all down so you know exactly what's committed before you spend a dollar elsewhere.
Step 3: Track your variable expenses. Variable expenses like groceries, gas, dining out, and entertainment shift month to month. Review the last two to three months of bank or credit card statements to get a realistic picture of where your money goes.
Step 4: Set your financial goals. Before dividing up the rest, decide what you're working toward. Paying off debt? Saving for a home? Your goals shape how you allocate what's left after essentials.
Step 5: Give every dollar a job. Subtract your expenses from your income. Divide what remains among savings, debt repayment, and discretionary spending. The goal isn't perfection; it's awareness and intention.
Step 6: Review and adjust regularly. A budget is a living document. Check in monthly to see what's working and what isn't. Life changes, and your budget should too.
Step 2: List your fixed expenses. Fixed expenses stay the same each month: rent or mortgage, car payments, insurance premiums, and subscriptions. Write them all down so you know exactly what's committed before you spend a dollar elsewhere.
Step 3: Track your variable expenses. Variable expenses like groceries, gas, dining out, and entertainment shift month to month. Review the last two to three months of bank or credit card statements to get a realistic picture of where your money goes.
Step 4: Set your financial goals. Before dividing up the rest, decide what you're working toward. Paying off debt? Saving for a home? Your goals shape how you allocate what's left after essentials.
Step 5: Give every dollar a job. Subtract your expenses from your income. Divide what remains among savings, debt repayment, and discretionary spending. The goal isn't perfection; it's awareness and intention.
Step 6: Review and adjust regularly. A budget is a living document. Check in monthly to see what's working and what isn't. Life changes, and your budget should too.
Tools to get started
Ready to put a plan into action? Download our free budget template to start on your own or work one-on-one with a certified Money Canvas coach at no cost.
Free budget template & tracking worksheet
Download your free, easy-to-use budget template (PDF) and take control of your finances.
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