Living La Vida Broka?
Let’s be real. Budgeting sounds boring, right? But stick with me—because learning how to make a budget is one of the best things you can do to keep your money from mysteriously vanishing into thin air.
Whether you’re living paycheck to paycheck or just want to stop panicking every time you check your bank account, this guide will show you how to take control of your cash without giving up everything fun.
Spoiler alert: You don’t have to live on rice and beans forever. Pinky promise!
The Importance of Family Budgeting & Why It Actually Matters
Okay, so why does learning how to make a budget even matter? Here’s the deal: when you tell your money where to go, it doesn’t just run off without asking.
A budget helps you:
- Pay bills on time.
- Avoid debt (bye, scary credit card interest).
- Save for fun stuff—like vacations, new shoes, or an emergency pizza fund.
The importance of family budget planning is huge too. When everyone in the house is on the same page, you’ll argue less about money and work better as a team. Like the Avengers—but with groceries.
How to Budget like a Grown-Up
Step 1: Know Your Income (AKA How Much Money You Actually Have)
Before you can budget anything, you have to know what you’re working with. Write down all the money you bring in each month. This could be from your job, side hustles, government benefits, or even dog-sitting that fluffy little gremlin down the street.
If your income changes from month to month (knock knock freelancers!), just average it out from the last 3–6 months.
Step 2: List Your Fixed vs Flexible Expenses (Yes, There’s a Difference)
Here’s where the difference between fixed budget and flexible budget comes into play.
- Fixed expenses: These stay the same every month. Think rent, car payments, Netflix (because duh).
- Flexible expenses: These change from month to month. Think groceries, gas, and impulse Target runs.
Understanding the difference between fixed budget and flexible budget will help you know what costs you can truly control and/or cut back if and when needed.
Step 3: Track Your Spending (Where Did All My Money Go?!)
Ever open your bank app and think, “Umm… who spent $87 at 7-Eleven?!” Ohhh right… it was you. We’ve all had that moment of panic, scrolling through every last transaction like a detective, trying to figure out where every last dollar—correction, every last cent—disappeared to.
Alright, so here’s what you’re gonna do: Go grab yourself a cute notebook. Nothing fancy—hit up Dollarama, Dollar Tree, the Dollar Store—whatever’s nearby. They’ve got some surprisingly awesome ones that would cost ten times more anywhere else.
Once you’ve got your notebook and a good pen (because yes, it matters), here’s the deal: This notebook has a job to do. No doodles, no drawing 3D cubes or writing your name in bubble letters next to a sketch of your cat. That’s what your other notebook is for. This one? This one’s your money sidekick.
Write down everything you spend money on for one full month – and I mean EVERYTHING;
……. every coffee, every Amazon order, every fast-food stop, even every vending machine snack. This will show you exactly where your money is going, and when it’s sneaking out the back door.
Step 4: Give Every Dollar a Job (So It Stops Slacking Off)
Now that you know your income and expenses, it’s time to build your budget. The goal is to make sure every dollar has a purpose—like rent, food, savings, or finally paying off that random subscription you forgot about.
A solid rule is the 50/30/20 method:
- 50% for needs (rent, groceries)
- 30% for wants (treat yo’self)
- 20% for savings or debt
Adjust based on what matters most to you. If your income is super low, your budget might look more like 70/20/10, and that’s okay too!
How to Budget Groceries Like a Pro (or at Least Like a Semi-Competent Adult)
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: Stop the Impulse Buys
Next time you’re about to buy something that’s not a need, stop and wait 24 hours.
This gives you time to ask yourself:
- Do I really want this?
- Will I still care tomorrow?
- Could this money go toward something better?
Nine times out of ten, you’ll forget about the item entirely. That’s the magic of the 24-hour rule—it keeps you from spending money on junk you’ll regret.
Avoid Debt Like That One Weird Relative at Family Gatherings
Debt is sneaky. One minute it’s just a little loan, and the next it’s a mountain of payments, interest, and stress.
Living debt-free (or as close to it as possible) is the best gift you can give your future self. It means more freedom, less stress, and more room in your budget for stuff you truly care about.
If you have debt, plan to pay it down. Even $50 a month helps.
Cut Transportation Costs Without Living in a Cave
Cars are great, but they’re also money pits on wheels. If you’re trying to save, it might be time to rethink your ride.
Try these:
- Walk or bike if you can (free exercise!).
- Take public transit.
- Carpool with a friend or neighbor.
- Trade your car for a cheaper, used one if you’re drowning in payments.
Or do what my sister did and become obsessed with rollerblading. Zero gas required.
How to Lower Your Electricity Bill (Without Living in the Dark)
Want to save money fast? Attack your energy bill like a frugal ninja.
Here’s how:
- Do laundry and dishes during off-peak hours.
- Turn off lights and unplug stuff when you’re not using it.
- Use a fan instead of cranking the A/C.
These tiny changes can cut your bill way down. And you won’t have to wear five sweaters to survive winter either.
Fun Doesn’t Have to Be Expensive (Seriously)
Budgeting doesn’t mean becoming a hermit. There are so many cheap (or free) ways to have fun.
Try:
- Movie night at home.
- Potlucks with friends.
- Free community events.
- Game night with board games you already own.
Fun doesn’t need to cost $100 a pop. Be creative. And if you’re social, involve friends in low-cost plans—they’re probably broke too.
How to “Live for Free” (Sort Of): The Housing Hack
This one’s not for everyone, but it’s very cool if you can swing it.
Here’s the trick: Rent out part of your home to help cover the mortgage. A basement suite, a spare room, your parking spot—heck, even your storage space.
Some people even start an Airbnb business and rent out their home when they’re away, which is a genius way to make money off something you already own.
Getting rid of or reducing your biggest expense—your rent or mortgage—is life changing. It frees up cash you can use to save, invest, or finally fix your cracked phone screen.
Make a Budget, Tame Your Wallet
Learning how to make a budget isn’t about being perfect. It’s about being intentional with your money.
And once you understand the difference between fixed budget and flexible budget, track your spending, and prioritize the importance of family budget planning, you’ll realize this whole “adulting” thing isn’t so bad.
You’re not too broke, too late, or too behind. You’re just one smart choice away from making your money work for you.
Now go grab your notebook (or even a budgeting app if you prefer) and start building that budget!
