News and insights
A simple way to build a monthly budget
Start with what you already spend, then decide what to change.
A budget does not need to be complicated. Begin by looking at the last two or three months of spending, grouped by category. Most people are surprised by one or two lines.
Next, list the amounts that stay the same every month, such as rent or a mortgage, insurance, utilities and loan payments. Subtract them from your income. What is left is what you can split between everyday spending, saving and paying down debt.
Set a limit for each everyday category and check in weekly for the first month. Adjust the limits until they match how you really live, then keep them. Online banking shows how much is left in each category and can alert you before you overspend.
