How to Make a Budget That Works

Do you ever feel like your paycheck disappears faster than you expected, even though you’ve got a full-time job? That’s exactly how Gabe felt until he sat down with financial coach Brielle for a no-pressure conversation about money and mindset.

Let’s walk through their step-by-step approach to making a budget you can actually stick to.

Step 1: Know Your Monthly Income

Start by writing down how much money you take home each month after taxes.

Example: Gabe earns $4,000/month after taxes.

This number will serve as the foundation for your budget.

Step 2: Use the 50/30/20 Rule

The 50/30/20 method is a simple, flexible way to organize your spending:

50% for essentials: Rent, utilities, groceries, insurance, transportation
30% for wants: Dining out, entertainment, streaming, shopping
20% for savings and debt: Emergency fund, debt repayment, long-term savings

It’s okay if your numbers aren’t exact, but aim for these general ratios to build a solid financial foundation.

Step 3: List All Your Expenses

You can use a spreadsheet, an app, or a printable worksheet (ask your local Bank Five Nine team!). Gabe filled in these categories:

Essentials:

Rent: $1,000
Utilities: $150
Internet & Phone: $125
Groceries: $300
Transportation: $200
Healthcare: $75
Student Loans & Car Payments: $950

Total Essentials: $2,800

Wants:

Dining Out: $300
Entertainment: $150
Subscriptions: $175
Personal Care & Other: $275

Total Wants: $900

Total Monthly Expenses: $3,700

Budget Surplus: $300

Step 4: Make Room for Goals

With $300 left over, Gabe decided to:

Set aside $200 to accelerate debt payoff
Keep $100 as a rainy day savings cushion

Want to grow your surplus? Consider:

Trimming back on dining out or subscriptions
Reviewing old transactions for habits that no longer serve you

Using a budgeting app that alerts you to spending patterns. You can also use our Budgeting Calculators to help you stay on track.

Step 5: Adjust and Automate

Budgeting isn’t one-and-done. Revisit your numbers monthly, especially if your income or expenses change. Automate your savings and debt payments so your goals stay on track, even when life gets busy.

Bank Five Nine Tip: Look at your statements weekly or twice a month. Awareness is your budgeting superpower.

Key Takeaways

Start with your net income (take-home pay)

Follow the 50/30/20 rule to balance essentials, wants, and savings

Track every expense, even the small ones

Cut back on non-essentials to reach your savings and debt goals

Use tools, apps, or a printable worksheet to stay consistent

Talk to your bank if you need help; budgeting is easier when you have the right resources

Need help setting up your budget?

Visit your nearest Bank Five Nine branch or connect with a banking advisor for support in:

Finding the right savings plan
Exploring apps and tools that simplify budgeting (check out our Budgeting Calculator)
Setting realistic goals based on your lifestyle

Let’s build a plan that works for you.

Learn More About Savings Options →

FAQ Section

˄ What is the 50/30/20 rule in budgeting?

A simple method where 50% of income goes to needs, 30% to wants, and 20% to savings or debt.

˄ How often should I review my budget?

Check in at least monthly, or more often if your income or expenses change.

˄ How do I know if my budget is working?

If you have a surplus, hit your savings goals, and don’t rely on credit to get through the month, you’re on track.

˄ What tools can help me make a budget?

Budgeting apps, bank statement reviews, printable trackers, and digital calculators all make it easier.

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