How to make a budget

Training 115 minuteshow to make a budget

You are 26, a sales assistant at an electronics store. Your first "grown-up" paycheck is $2,400 after tax. Your parents say "keep a budget", but nobody explains how.

Training goal: Build a first budget that works

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Situation

1. Your contract says $3,000, but $2,400 lands on your card. Which number does the budget start from?

From $3,000, that is my salary
From $2,400, the take-home amount
From the average, $2,700

2. What goes on the list first?

Fun, so joy is not forgotten
Everything at once, as it comes to mind
Fixed bills: rent, phone, transport, loans

3. How much for food and small stuff? It feels like about $300.

Average 3 months of statements
Set $300 and try to stay under
Set $200 to push yourself

4. After bills and food, $580 remains. How do you use it?

$240 to savings right away, $340 to live on
Keep it all for fun
Save all of it and live strictly

5. It is September. November brings Mom’s and two friends’ birthdays, December the holidays: about $400 in gifts. None of it is in the budget.

Deal with it when it comes
A $100 monthly "gifts" line from September
Give no gifts this year

What you will learn

Budget from take-home pay
Take real spending from statements, not memory
Savings and yearly costs are budget lines

Your real-life step

Write down your take-home pay and every fixed bill. Open 3 months of statements and work out your average food spending.

Questions and answers

How do I make a budget as a beginner?

Write down take-home pay, fixed bills, average variable spending from statements and a savings line. Compare plan and reality once a week.

What is the best way to keep a budget?

A spreadsheet, an app or a notebook all work. Regular use matters more than the tool: 10 minutes a week.

How many budget categories should I have?

Six to ten are enough to start: housing, food, transport, phone, debt, savings, fun, gifts. Add detail later.

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More trainings in this module

Numbers are illustrative. A game, not financial advice.