How to Make a Budget and Stick to It!

how to make a budget and stick to it
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How to Make a Budget & Stick to It!

One of the most important aspects of improving your financial situation is to create a budget. However, it can be very intimidating to make a budget for the first time. It can be even harder to stick to it. I have included some basic steps on how to make a budget and stick to it. Here are my tips on how to make a budget and stick to it for beginners.

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I have always had some form of a written budget. But when I was still figuring out this whole being an adult thing, I wasn’t very good at it. I even forgot to make some payments on time because I didn’t write down when they were due. There were even times, I completely forgot to pay a bill because I didn’t write it down. I quickly learned that I didn’t like to (and couldn’t afford to) pay higher interest and late fees, so I wrote down on my calendar when everything was due.

I got better at it with practice and made all my payments on time. When I discovered Dave Ramsey and read The Total Money Makeover, I learned about a zero-based budget. With a zero based budget you assign every dollar a job. Instead of having money left at the end of the month (on paper anyway), you account for every dollar going to something. This was very hard for me at first and seemed tedious but it was so worth it. We were able to pay off $45,000 in debt in 17 months by making a budget and sticking to it!

Step 1: A Written Budget

The first thing to do is to WRITE IT DOWN! This is crucial for making a budget and sticking to it. The first thing to figure out is how much income should be coming in for the month. It is crazy how many people don’t know how much money they make. Once you figure out what your income is, it is time to figure out where all your money is going. If you have irregular income, estimate an average monthly income.

While you are creating your first budget, I suggest going through the last 2-3 months of bank statements. This should give you a good starting point of what you need to budget for certain things like food and gas. Write down all your bills; rent/mortgage, TV, phone, insurance, power, water, internet, debt payments, food, gas and anything else that comes out monthly.

So, total your estimated income level for the month. List your bills and budget for each item for the month and total your expenses. Don’t forget to estimate money each month for “sinking funds”. Sinking funds are things that come up every now and then that need to be budgeted for each month. Things like taxes, Christmas, clothing, gift money, maintenance and propane.

If you are behind on bills, it is going to take some time to get caught up and then ahead on some items like your rent/mortgage. This is where selling items or getting an extra job come in. I talk about some of those things in my post about paying off debt quick. 

Get your FREE budget worksheet here:

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Step 2: Prioritize Spending

The next step is to prioritize your spending. This is especially important if you have irregular income or don’t have enough income to pay all your bills.

Make a list of everything in order of importance and focus on what you can.

  • Food
  • Housing/utilities
  • Transportation
  • phone/internet
  • Debt

The first thing you pay out of your paycheck is FOOD. The next things are power, water, and then rent/mortgage. Then comes transportation costs, like your car payment, insurance, and gas. Next is phone, internet, and then debt payments. If you work at home and have to have internet and/or a phone, then move those up the list in priority.

Either way, debt payments never come before food and other necessities.

This is not an all-inclusive list, but these items are generally priorities. If you have money left over, start saving for things that you know are coming up that you can’t cash flow right away, like taxes, doctor co-pays, vehicle maintenance, clothing and things like that.

budget workbook

Step 3: Stick to it

Ok, you have your budget written down with your income and bills, now what? Well the next step is to stick to it. It is going to be rough the first couple of months. You may over budget some things and under budget others. It is important during this time to give yourself some grace. No one is perfect even when it comes to budgeting. However, it does get easier with time and practice just like anything else.

Tips for sticking to the budget:

  • Write down the budget
  • Have an accountability partner
  • Use cash
  • Get started!

The most important part of sticking to the budget (besides writing it down) is having an accountability partner. If you are married, you should be doing this with your spouse. If you are single, tell a friend what you are doing and ask them to hold you accountable. Either way, tell some close friends what you are doing so they can support you. You may even find that you inspire them to start this journey with you.

I found that by telling my friends what we were doing, they were supportive and inspired to start their own debt-free journey. By telling your friends what you are doing, it can make it easier if you don’t have money to do certain things, like eat out or go on a trip. Hopefully, your friends will understand and be supportive of your journey.

The other almost as equally important part to sticking to your budget is using cash. Using cash has a different feeling than swiping a card. You actually spend less when using cash. Using cash makes it easier to stick to your budget because once it’s gone, it’s gone. The idea is to quit spending once the cash is gone in a certain category.

Now it’s time to get started! Just remember, progress is progress, no matter how slow.

budget workbook

For more tips and worksheets on creating a budget, saving money, and paying off debt, checkout The Ultimate Budget Makeover Workbook. You get worksheets to help you save $1000 in one month, make a budget and achieve your financial goals. Plus all the tips and advice that helped us payoff $45,000 in 17 Months!  It’s an ebook, workbook, and planner all in one. I have done all the handwork for you!

budget workbook for beginners

If you enjoyed this post, like, share, or comment! I look forward to hearing from you about your journey and any questions you may have.

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9 comments on “How to Make a Budget and Stick to It!

    1. thank you! It is hard but having a written budget especially if your income is irregular is crucial. Let me know if you have any questions!

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