Budgeting doesn’t have to mean spreadsheets and sacrifice. With the right mindset, it can be simple, empowering, and even stress-relieving. Here’s how to start — no math degree required.
Step 1: Know your income
Start by listing your total monthly income from all sources. This includes your salary, freelance work, or passive income. Knowing exactly how much is coming in is key.
Step 2: Track your expenses
For one month, track everything you spend — rent, groceries, coffee, streaming services. You might be surprised where your money goes.
Step 3: Categorize and prioritize
Group your expenses into essentials (rent, bills, food), non-essentials (dining out, shopping), and savings. Then, set realistic limits for each.
Step 4: Use the 50/30/20 rule
A simple way to start:
-
50% of income for needs
-
30% for wants
-
20% for savings or debt repayment
Step 5: Use apps or tools
Apps like Mint, YNAB, or even a notebook can make budgeting easier and more visual. Choose whatever keeps you consistent.
You don’t have to be perfect — budgeting is a habit, not a punishment. Over time, it gives you more freedom, not less.
