Living La Vida Broka?
Let’s Be Real: Budgeting Sounds Boring
Budgeting. UGH. Just the word makes most people want to slam their laptop shut and go binge-watch Netflix instead. SAME!
But stick with me—because learning how to make a budget is one of the best things you can do if you’re serious about keeping your money from mysteriously vanishing into thin air.
Why You Need a Budget
Think about it: you work hard for your paycheck, and then somehow it’s gone before the month is even halfway over. That’s not bad luck—it’s what happens when your money doesn’t have a plan.
Once you know how to make a budget that actually works, you’ll stop asking, “Where did all my money go?” and start telling your money exactly where to go.
You should totally check out my guide on the Easiest Way to Budget for even more simple, no-fuss tips to help you build a budget that actually sticks.
The Truth About Budgeting
It Doesn’t Mean Cutting All the Fun
Now, I know what you’re thinking: making a budget means cutting out every fun thing in your life. Nope. Wrong.
Forget the idea that budgeting = surviving on ramen noodles and skipping your iced coffee runs. Learning how to make a budget isn’t about saying no to everything—it’s about creating a system that makes room for bills, savings, and yes, the fun stuff too.
Who This Guide Is For
Whether you’re living paycheck to paycheck or just tired of panicking every time you open your banking app, this guide is for you.
I’ll walk you through simple, beginner-friendly steps on how to make a budget that fits real life (not some perfect spreadsheet that gathers dust). By the end, you’ll feel less stressed, more in control, and maybe even excited about managing your money.
So grab your favorite drink, pull up a comfy chair, and let’s dive into the surprisingly not-boring world of budgeting. Because once you learn how to make a budget, you’ll finally feel like you’re the boss of your money—instead of the other way around.
The Grown-Up’s Guide to Budgeting Made Simple
Okay, so why does learning how to make a budget even matter? Simple: when you tell your money where to go, it stops running off like a toddler in a grocery store aisle.
A good budget helps you:
✅ Pay bills on time (adulting level unlocked).
✅ Avoid debt (goodbye, scary credit card interest).
✅ Save for fun stuff—vacations, new shoes, or even an emergency pizza fund.
And let’s not forget family budget planning. When everyone in the house is on the same page, you argue less about money and work better as a team.
Basically, the Avengers—but instead of fighting aliens, you’re crushing grocery bills. 😉
Budgeting doesn’t need to feel like punishment. Here’s a step-by-step on how to make a budget that actually works in real life.
Step 1: Know Your Income (AKA What You Actually Have)
Before you can plan a dime, you need to know what’s coming in. Write down all the money you bring in each month: your job, side hustles, government benefits, babysitting your neighbor’s kids, or dog-sitting that fluffy gremlin down the street.
If your income is inconsistent (hi freelancers!), take the average of the last 3–6 months to get a realistic number.
Step 2: Separate Fixed vs. Flexible Expenses
Here’s where the fixed budget vs flexible budget difference comes into play.
✅ Fixed expenses: These stay the same every month. Rent, car payments, Netflix (non-negotiable).
✅ Flexible expenses: These bounce around. Groceries, gas, and yes—those “I only went in for one thing” Target runs.
Knowing which costs are flexible makes it easier to see where you can cut back if needed. Spoiler alert: it ain’t gonna be Netflix! Lol.
Step 3: Track Your Spending (Detective Mode Activated)
Ever open your bank app and think, “Who spent $87 at 7-Eleven?!” … and then realize it was you? We’ve all been there.
Here’s your move: grab a notebook from Dollarama, Dollar Tree, or anywhere cheap. This notebook is now your money sidekick—not your doodle pad. Write down everything you spend for one full month:
- Every Coffee…..
- Every Amazon “oops, it was on sale” purchase….
- And Every vending machine snack.
At the end of the month, you’ll see exactly where your money is sneaking out the back door. (Hint: it’s usually Starbucks + late-night Uber Eats.)
Step 4: Give Every Dollar a Job
Now that you know your income and spending, it’s time to boss your money around. Every dollar needs a job—rent, food, savings, or paying off that random subscription you forgot about.
One easy method is the 50/30/20 budget rule:
✅ 50% for needs (rent, groceries, bills)
✅ 30% for wants (yes, that latte counts)
✅ 20% for savings or debt
And if your income is tight? Shift it. Try 70/20/10 or even 80/15/5.
Whatever. Either way, the point is now, YOU are in control. So, give yourself a pat on the back bestie. 😉
How to Budget Groceries Like a Pro
Groceries are one of those flexible expenses that can really add up. But you don’t need to survive on instant noodles.
Try these tips:
✅ Make a meal plan before you shop.
✅ Only buy what’s on your list. Seriously.
✅ Use coupons and apps like Flipp.
✅ Try making your favorite takeout meals at home—there’s tons of copycat recipes online!
Shop Smart with Flipp and Save on Groceries
Once you get the hang of it, budgeting your grocery bill can save you hundreds a month. Plus, you might even start liking your own cooking (wild, I know).
The 24-Hour Rule
If you’re serious about learning how to make a budget that actually works, here’s something you need to remember: your budget doesn’t just live on a spreadsheet. It lives in those little daily choices—like the moment you’re staring down a “must-have” candle at Target or a late-night Amazon lightning deal.
Stop the Impulse Buys (and Save your Budget):
Enter the 24-hour rule—your new best friend in the battle against impulse buys.
Here’s the deal: the next time you’re about to buy something that isn’t a true need, stop and wait 24 hours before hitting “checkout.” Yup, just 24 hours. That’s it.
Why? Because those 24 hours give you space to ask yourself 3 important questions:
❓Do I really want this, or was it just shiny in the moment?
❓Will I still care about it tomorrow, or will it end up collecting dust next to that smoothie maker you swore you’d use?
❓Could I put this money toward something better—like family budget planning goals, paying off debt, or even grocery budgeting so you’re not stuck with ramen noodles at the end of the month?
Here’s the crazy part: nine times out of ten, you’ll forget about the thing entirely. That’s the magic of the 24-hour rule. It’s like a built-in filter for your spending—keeping the junk out of your cart and making sure your money sticks to what actually matters.
And this isn’t just about saying “no” to fun stuff. It’s about aligning your spending with your real priorities. Once you learn how to make a budget and start using tricks like the 24-hour rule, you’ll realize your money stretches way further. You’ll pay bills on time, save for the good stuff (vacations, shoes, or yes—an emergency pizza fund), and still have room for joy.
So the next time you feel the urge to impulse buy, remember: pause, breathe, and give it 24 hours. Your future self (and your bank account) will thank you.
How to Make a Budget That Avoids Debt
Debt is sneaky. One day it’s just a small loan, and the next thing you know, it’s a mountain of payments, interest, and stress staring you down.
Here’s what to remember: living debt-free (or as close to it as possible) is one of the best gifts you can give your future self. It means less stress, more freedom, and more room in your budget for the stuff you actually care about—like family budget planning goals or saving for vacations instead of paying credit card bills.
If you already have debt, don’t panic. The trick is to build it into your budget. Even putting $50 a month toward debt makes a big difference. When you know how to make a budget that prioritizes debt payoff, you’re already miles ahead.
How to Make a Budget That Cuts Transportation Costs
Cars are convenient, but let’s be honest here, they’re also money pits on wheels.
Between car payments, insurance, gas, and repairs, they can reeeeally eat up a huge chunk of your monthly budget that’s for sure.
But saving here doesn’t mean you have to live like a hermit and stop going out. Try these smarter (and more fun) options:
- Walk or bike if you can—it’s free exercise and fresh air.
- Take public transit—less stress, less parking drama.
- Carpool with friends or neighbors—bonus: built-in gossip sessions.
- Trade your car for a cheaper, used one if your payments are crushing you.
- Or do what my sister did and become slightly obsessed with rollerblading (budget-friendly and hilarious can’t lie! Lol)
Transportation is a flexible budget expense, which means you have control. When you rethink your ride, you free up money that can go toward savings, paying off debt, or even groceries that don’t come from the instant noodle aisle.
How to Lower Your Electricity Bill (Without Living in the Dark)
Learning how to make a budget that slashes your energy bill can save you money every single month without sacrificing comfort.
Want to save money fast? Attack your energy bill like a frugal ninja. These little changes might not seem huge at first, but they add up faster than you think.
Easy Energy-Saving Wins
💡 Do laundry and dishes during off-peak hours—same chores, cheaper bill.
💡 Turn off lights and unplug stuff you’re not using—phantom energy is real.
💡 Use a fan instead of blasting the A/C—your wallet (and your power company) will thank you.
Tiny adjustments like these can shrink your bill without forcing you to wear five sweaters in winter or sweat through your summer. Remember: learning how to make a budget isn’t just about cutting big expenses, it’s about catching the sneaky little ones too.
How to Make a Budget That Keeps Fun Affordable
Like I said, budgeting doesn’t mean becoming a hermit. There are soooo many cheap (or even free) ways to have fun, and your social life doesn’t need to cost $100 a pop.
Fun on a Budget:
- Movie night at home (hello, popcorn and pajamas).
- Potluck with friends (you only cook one dish but eat ten).
- Free community events (concerts, festivals, art walks—check your city calendar).
- Game night with the board games you already own.
Get creative. And if you’re social, involve friends—they’re probably looking for low-cost fun too. Part of knowing how to make a budget is realizing fun can be affordable when you plan for it.
How to Make a Budget That Cuts Housing Costs
Here’s the big one. Housing is usually your biggest expense, which means lowering it has the biggest payoff.
Housing Hacks to Try:
✅ Rent out a basement suite, spare room, or even a parking spot.
✅ Got storage space? Someone out there will pay to use it.
✅ Start an Airbnb side hustle when you’re out of town.
This “live for free” approach isn’t for everyone, but when it works, it’s life changing. Reducing your rent or mortgage frees up cash you can use for savings, investing, or finally fixing that cracked phone screen you’ve been ignoring.
Make a Budget, Tame Your Wallet
At the end of the day, learning how to make a budget isn’t about perfection—it’s about intention.
When you understand the difference between a fixed vs flexible budget, track your spending, and practice family budget planning, you’ll see that adulting isn’t so scary after all. You’re not too broke, too late, or too behind. You’re just one smart choice away from making your money work for you.
So grab a notebook (or a budgeting app if you prefer), start small, and remember: every budget is just a living, breathing plan. Build it, tweak it, and let it guide you toward a life where your money finally behaves.
