BET Lesson 6 of 11 · 5 min read
Put your budget together
Turn your income, spending and bills into one monthly plan you can follow, step by step.
Six steps to a working budget
- Set one or two goals, such as an emergency fund or paying off a card. Goals make the plan worth following.
- Write down your monthly take-home income.
- List your fixed, must-pay costs: housing, car payments, child care, insurance.
- Plan your flexible costs: groceries, gas, utilities, clothing, fun. Use what your tracking showed, not wishful numbers.
- Check the total. Planned spending and saving shouldn’t be more than your income. If it is, trim wants first.
- Keep records and compare with real spending every month.
Line up bills with paydays
A bill calendar shows when each bill is due next to when you get paid. Paying late, even by a few days, usually costs a fee and can hurt your credit. Plan to send mailed payments at least 7 days before the due date and online payments 2–3 days before.
Plan for the months that aren’t typical
Some costs don’t come every month: car insurance, registration, holiday gifts, school supplies. Add these to your budget as a small monthly amount you set aside, so they don’t become emergencies. The “Saving for goals” lesson shows how.
Remember
- Start with a goal, then income, fixed costs and flexible costs.
- Planned spending and saving shouldn’t add up to more than income.
- Line bills up with paydays and pay a few days early.
Build your own budget
Open a ledger in BET and choose the Budget tab. The builder walks you through these steps and suggests amounts from what you’ve spent lately.
Sign in with Google to try itSources and further reading
- Building a Budget (Penn State Extension)
- Budgeting: How to create a budget and stick with it (Consumer Financial Protection Bureau)
- Bill calendar (printable tool) (Consumer Financial Protection Bureau)
- How Do I Budget for Non-Monthly Expenses (Utah State University Extension)