Budgeting 101: 7 Simple Steps to Create A Personal Monthly Budget (and stick to it)

Source: Karolina Grabowska

What were your last month’s total expenses?

You probably can’t remember. Uhh … scratch that. You probably don’t know, and that’s why you’re researching how to create a budget. According to the Bureau of Labor Statistics, American households spent $61,334 in 2020 on average. And SWNS reports that Americans make an average of five impulse purchases a month.

Creating a budget helps you track your spending, block the holes leaking your money, and save toward your financial goals. Before we take a deep dive into how to make a budget and set you on the path to financial freedom, let’s first understand what a budget means.

What is a budget?

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A budget is a plan that helps you track and keep a record of your income and expenses for a defined period. Creating a budget is a great step to being in control of your finances and building wealth or taking your personal finance seriously.

How?