5 STEPS TO LEARN HOW TO
BUDGET
Having a budget helps you understand where your money goes and can help you reach your financial goals. Learn how to budget with these 5 steps—and then keep it going every month.
You need to define your goals. Whether it's buying a laptop, paying for college, or saving up for a new outfit, it's important to know what you're saving for.
DID YOU KNOW?
The average cost per year for a public 4-year in-state college was $27,330 in 2021-2022.1
Figure out how much you make each month by adding up all your sources of income (paychecks and any other money you have coming in).
If your income varies from month to month, base your budget on a month with a lower income.
Taxes are usually deducted before you get your pay. Don’t forget to set money aside to pay taxes if you are paid in cash.
Look through your previous bank statements to figure out your expenses. Your budget will only be helpful if it’s accurate, so make sure to include everything from coffee and snacks to clothing.
DID YOU KNOW?
Americans who make coffee at home rather than buying it at a shop save around $427 per year on average. Is that something you’d be willing to compromise on to save some cash?²
Consider budgeting money for:
- Current You: snacks, clothes, personal care
- Future You: new car, new laptop, spending money for college
- Possible You: car repair, phone replacement, medical expenses
DID YOU KNOW?
Statistically, 5,671 phone screens are broken every hour—that’s nearly 2 per second!³
Consistency is key when it comes to budgeting.
Don't forget to celebrate your win. Whenever you hit a milestone, grab yourself a little treat. Just make sure you budget for it!
