How to start a household budget

If you are new to budgeting and wondering how to start your first monthly budget, you’re in the right place. First of all, congratulations on taking this important step! Budgets might sound drab, restrictive, and no fun at all, but my hope is that you’ll soon start to see your budget in a different light.

As you work with your budget month after month, I’m confident you’ll see how your budget is empowering. By spending according to a plan, you’ll feel great about making progress toward your financial goals, and you’ll feel better about the money you do spend.

That said, I realize that creating your first monthly budget can be a little intimidating. It’s math, first of all. And it’s highly personal math. It’s natural to feel some degree of anxiety, fear, shame, guilt, and a whole host of other emotions. So we won’t neglect that emotional component in the steps below. In fact, that’s what step 1 is all about.

Step 1: Get clear on your “why”

Why do you want to start a monthly budget? Are there financial goals that you want to reach? Perhaps you want to get out of debt. Or perhaps you want to save for a downpayment on a house or for retirement. You may just want a budget so that you can spend your budgeted money guilt-free on the things that make you happy.