Budgeting is used to plan out how you spend your money each month. With a budget, you can see where your money is coming from, where your money is going, how much is coming in, and how much is going out.

In the most simple form, you can create a budget and track your spending using these steps:

  • Use an app, spreadsheet, or pencil and paper
  • Record each source of income you have for the month. These sources can generally be found on your bank statements.
  • Record each expense you have, such as rent, groceries, utility bills, fuel for your car, and subscriptions. Use your credit card and bank statements to determine how much you’re paying for each expense.
  • Subtract your expenses from your income to determine how much money you have leftover each month.
  • If this number is negative, you’re losing money and you’ll want to cut back on spending or increase your income, or both.
  • Many financial experts recommend saving at least 20% of your monthly leftover money. This 20% or more can be applied to paying down debt faster, adding to a savings account, or invested for your future.

Here's Clean Cut Finance's free home budget template to help you manage your finances.

Clean Cut Finance has many articles that will help you learn to budget for different reasons or simply how to budget as a beginner. Our articles can be found below.

Budgeting Basics

Lifestyle on a Budget

All Budgeting Articles

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