How to Budget My Money

How to budget my money is a topic that we know many people are trying to discover more about, and it is not always simple to do. Many otherwise excellent personal finance resources include this sage piece of advice: Stick to a budget. That’s very well and good, but without a little more detail, you may find this suggestion difficult or impossible to follow. Below, you’ll find some more detailed budgeting tips that can make it a lot easier to keep your budget realistic and stick with it. Better money-management skills are just a quick read away!

First of all, dedicate yourself to tracking your expenses and your income closely. This is something that most people do in the early stages of budgeting, when they’re trying to build their first budget. It’s important to stick with this process, though! Taking the time to monitor the movement of your money is the only way to really know how well your budget is working.

In the long term, you need to do a fair bit of budget maintenance. A budget is not something that gets chiseled in stone when you first put it together; it’s reasonable to exercise a little bit of flexibility in your budgeting. Sitting down to look at how your budget matches your actual expenditures and income every month or two will help you fine-tune both your budget and your spending habits.

Although flexibility is important, so is dedication. While unexpected expenses are, obviously, impossible to budget for, some budget-busting items are less surprising. Keep in mind that you’ll need to go beyond your everyday spending to take care of seasonal events like holidays and vacations. Advanced preparation will help here; you can save a little bit every month to help you prepare for these foreseeable financial burdens.

One thing that may help you stay focused on your budget is to give it a larger purpose. Many people have long-term financial goals, and your budget can be tailored to help you meet them. If you’re saving for a major purchase (e.g. a down payment on a house) or an important goal (like eliminating your credit card debt), make your month-to-month budget reflect your priorities.

When your budget includes these sorts of major financial projects, be sure to take notice when you reach your goals. Your budget will need to be adjusted once you’re not saving for a big-ticket expense or paying off a big debt, of course. Don’t forget to reward yourself for your accomplishment, though! Before you realign your budget, take a little bit of your new surplus cash and treat yourself.

Patience is really the key to managing your money wisely and improving your financial situation. A budget can help you cultivate financial patience. By focusing your financial attention on the long term, you’ll be able to make wiser choices with your money. You’ll have your long-term goals in mind when you’re tempted to splurge. Stick with your budget and you’ll reach those goals sooner than you think!

Ideally, you’ve picked up a trick or two here that will make it easier to set and stick to a good budget. Although there are a lot of little skills that contribute to how to budget my money, being able to budget is one of the most crucial ones. With a little practice (and a little wise advice), you’ll get the hang of it in no time. Good luck with your next budget! 


1. How much do I spend every month?
2. What are my variable and non-essential charges? How can I reduce these?
3. What level of income do I need in order to earn more than I spend?


1. Write down your income and expenses on a notepad or use a spreadsheet. Financial software, like Quicken, can be helpful in creating your budget.
2. Come up with as close a figure as possible for your variable expenses like groceries or entertainment.
3. Trim your variable and non-essential expenses until you’re spending less than you make.