Monthly Budget

How to Make a Monthly Budget in 5 Easy-to-Do Steps

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To keep your finances in order, you may want to create a monthly budget, but how?

In the United States, the median household income was $68,703 in 2019. Whether you have one or more incomes in your home, it can be overwhelming to create a budget on the fly. 

For those wanting to know how to make a monthly budget, check out this beginner guide with five easy-to-do steps. 

Read on to learn more.

1. Add Up Your Income Sources

If you want to know how to make a budget, the first step is to add up your income sources. Determine how much money your household is bringing in every month. 

Consult your pay stub to get as close to possible as the true value of your income. The fewer estimations, the better. Tally all of your income sources together. If you take the annual income of each patron, simply divide by fifty-two to get a week-by-week income estimation.

For more information on how to calculate a budget, check out for all the best tips and tricks. 

We recommend using Google Sheets, Excel, or a similar platform to write out your income breakdown. This serves to make updates and changes simple and also makes sharing the document easy.

2. Decide Your Fixed Costs

One of the best monthly budgeting tips is to decide your fixed costs. Fixed costs are any costs that stay the same and are consistent each month. Examples of fixed costs include:

  • Rent
  • Water and sewer
  • Insurance
  • Electric
  • Internet
  • Phone plans

Add all of your fixed costs together and put them in an essential expenses column. This is money you know must be spent each month.

3. Consider Variable Expenses 

Don’t forget to also consider variable expenses. Variable expenses are costs that vary month-to-month. Variable expenses might be things such as:

  • Groceries
  • Gas
  • Car maintenance
  • Toiletries
  • Medicine
  • Tuition
  • Coffee
  • Fast food

Breakdown your variable expenses into essential and non-essential columns. Some variable expenses are necessary, such as food. Others, like coffee and fast food, are non-essential.

Try to create a budget for both essential and non-essential columns. This can either be a weekly or monthly budget depending on preference.

4. Think About One-Time Annual Spends

Remember to think about one-time annual expenses. If you’re taking a trip or purchasing a new piece of furniture or appliance, it will likely take additional planning. Dedicate room in your budget for savings.

5. Create a Schedule

To make the best monthly budget, create a schedule for yourself. Be sure to review it at least every two weeks to make sure you’re on track with what you planned. It’s okay to use online resources and ask for help!

How to Make a Monthly Budget

It can be intimidating to know how to make a monthly budget if you go in blind. Equip yourself with all the right tools with our beginner guide today. You’ve got this. 

What are you waiting for? Your newly designed monthly budget awaits!

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