Budgets can seem complicated, hard to stick to, or just scary: “Does this mean no more iced mocha lattes?!” But when they’re kept clear, simple, and realistic, budgets are your money’s best buddy.
The whole idea of a budget might seem overwhelming—but it’s easier than you think.
1. Start by looking back
Review your spending from the last six months to understand your regular purchases and bills, plus any savings contributions or unexpected costs.
2. Create categories
Categorize your spending into entertainment, food, housing, utilities, etc. This isn’t about setting harsh limits—it’s about knowing where your money’s going.
3. Find your formula
There are a few popular formulas for budgeting, like the 50/30/20 rule and reverse budgeting, which is covered in another o