How To Make A Personal Budget

How To Make A Personal Budget


April 7, 2025 | Penelope Singh

How To Make A Personal Budget


Tough Times Call For Tough Measures

With all the uncertainty in the economy and job market these days, we need a reliable strategy to keep some money in our pocket at the end of each week. The challenges of unexpected expenses and rising prices require planning and smart spending. This is where making a personal budget can help you through the tough times.

Personal Budget Basics

At its most basic level, a personal budget is a statement showing how much money you’re bringing in, how much you’re spending, and how much you have left over at the end of a set time period. You can choose what time period you want to budget for. Since many utility bills, rent, mortgage payments etc. are paid out monthly, it may make more sense to go month-to-month. If things are tighter, a weekly budget can help you really exercise control.

person holding paper near pen and calculatorKelly Sikkema, Unsplash

Advertisement

What To Use

Any sort of spreadsheet software will work for a personal budget. There are also all sorts of apps you can download to make the process easier. The math isn’t complicated, but you will have to keep or have access to accurate financial records, receipts and statements. You probably have a rough idea of your financial situation, especially if you’re having trouble paying your bills, but a proper budget will give you better insight on what’s going on.

Income

Start by adding up all the money you have coming in from every source. Look at how much money you’re bringing in from jobs, side hustles, garage sales, etc. Consider how much money you’re making. Are there other part-time job opportunities or side hustles you could take on?

a person using a laptop on a bedSincerely Media, Unsplash

Advertisement

Expenses

Here is where things get interesting. You’ll want to keep receipts of all the money you spent in stores, restaurants, etc. and examine bank and credit card statements to find service fees, interest charges, etc. If your expenses are higher than your income, you need to take action so you don’t start sinking into debt.

Things You Need Vs Things You Want

Take a long, hard look at your receipts and credit card statements to see where you’ve been spending your money. Ask yourself if some of the things you paid for over the month were really necessary or worth it. There are many strategies you can take to reduce expenses, whether it’s eating out less, or making your home more energy-efficient.

Photo By: Kaboompics.comPhoto By: Kaboompics.com, Pexels

Advertisement

Where To Put Your Money

If you have money left over at the end of the month, you’re already on the right track. Whether your goal is to save for a big-ticket item like a car or vacation, or just put money away for the long term, sound budgeting is the way to get ahead of the game. You can investigate different strategies of budgeting if you want to adjust your approach. Zero-based budgeting is one popular method to get the most out of your money

Get In The Habit

Now that you’ve successfully budgeted for one month, don’t stop there. Start again on the first of the following month, using your last month's budget as a template. Knowing where you’re spending too much is the first step to getting your financial house in order. Over time, the work you’ve put in on your personal budgeting will put your finances on the right track and make you an active agent in your own financial success.

You May Also Like:

15 Ways To Put More Money Aside For Your Future In 2025

The Most Expensive Habits We Have—And How To Break Them

Top 10 Things People Waste Their Money On

Sources: 1, 2, 3


READ MORE

AI-generated image of woman in foreground as family members argue outside vacation home

My family inherited a vacation home, but nobody can agree how to use it. Should we just sell it, or is there another option?

Discover the best options for inherited vacation properties when family members disagree. Learn about buyouts, co-ownership agreements, rentals, tax implications, partition actions, and when selling may be the smartest financial decision.
July 2, 2026 Peter Kinney
AI-generated image of woman sitting on sofa next to mature couple

My parents' healthcare reality has completely ruined their longtime retirement plans. What's their best path forward now?

Healthcare costs can derail even the best retirement plans. Learn practical strategies to manage long-term care expenses, protect savings, navigate Medicare and Medicaid, and create a sustainable retirement plan for aging parents.
July 9, 2026 J.D. Blackwell
Happy smiling mature older family couple new property buyers

Over 600,000 Millionaires Follow The 70/30 Rule. Do You?

According to recent data, more than 600,000 millionaires appear to share one surprisingly simple habit. It's called the 70/30 rule. And chances are, nobody ever taught it to you.
July 9, 2026 Jesse Singer
My bank says I can't deposit large amounts of cash without answering personal questions.

My bank says I can't deposit large amounts of cash without answering personal questions. Why do they care where my money came from?

You walk into your bank with a large amount of cash, and suddenly the teller starts asking personal questions. It can feel intrusive, especially if the money is yours and you are simply trying to deposit it. But banks are not just being nosy. They are following federal anti money laundering rules that require them to understand certain cash transactions.
July 7, 2026 Carl Wyndham
man in dilemma standing in a living room with documents; a stressed woman in background

My sister keeps calling me selfish because I won't co-sign her mortgage. Am I protecting myself or abandoning family?

Few money requests feel as emotionally loaded as a plea to co-sign a mortgage. It can sound like a simple act of trust, but the legal and financial consequences are anything but small. If your sister says you are selfish for saying no, the real question is whether you are refusing a favor or taking on a major debt you do not control.
July 3, 2026 Carl Wyndham


Disclaimer

The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.





Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team