1Write down take-home income
Use pay after taxes and deductions. If your income changes, start with an amount you can reasonably expect. Check when it arrives, too.
2Put bills and basics first
List rent, food, transport, utilities and required debt payments. Include costs due later, such as insurance or repairs. Avoid counting the same cost twice.
3Choose spending and savings amounts
Give everyday extras a limit. Add a savings amount that fits after essentials. If the plan exceeds your income, change the amounts before committing money.
4Compare the plan with real spending
Record purchases as you go. Check in each week and adjust next month using what actually happened. Money left in the plan is still unassigned until you give it a job.
Try it with your numbers
Use the free worksheet for one person or a household. Remove rows you do not need.
Make your own monthly budgetFrequently asked questions
Do I have to use the 50/30/20 rule?
No. It is a starting framework, not a requirement. Build around your actual bills and income. A fixed percentage may not fit your situation.
What if I get paid every two weeks?
Plan around actual paydays and bill dates. An average monthly income can hide a shortfall before payday. Use the biweekly budget calendar for a dated example.
Further reading
Consumer.gov: Making a budget ↗Educational examples, not individual financial advice.