For a long time, I thought budgeting means to have rigid rules, endless calculations and trying to track where every dollar goes. But the truth? The best perfection just isn’t realistic, especially when you are balancing family, work, and everything life throws at you.
In this article I am sharing my personal budgeting routine to help you to create yours by your own!
Given all the things that life brings, I’ve created a monthly budgeting routine that’s flexible, intentional, and actually works. No overcomplicated systems. No guilt-tripping.
Just real, repeatable steps that help me to stay consistent with my money goals while still enjoying my life.
So if you’re new to budgeting like me, or just looking to refresh your approach for better planning, this is exactly how I plan my budget & suggest you to create,every single month.
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Step 1: Review last month’s numbers
I always begin with a look back to previous month . Before I even start planning for the new month, I want to know how things went last month, no guilt, just awareness.
I will always ask myself:
- What was my total income?
- How much did I spend and where?
- Did I overspend in any categories?
- How much did I save or invest?
- Did any unexpected expenses pop up?
Step 2: Map out my income
My income isn’t always the same month to month. I pay myself a salary from my business, but I also earn from side hustles like speaking, book royalties, and brand partnerships.
Here’s my rule: I always budget based on the lowest expected income. That way, if I earn more, it’s a bonus, not something I was counting on to make things work.
Similar post : – Unlock Your Financial Freedom: The Ultimate Guide to Free Budgeting Apps for Expense Tracking in 2025
Step 3: Allocate to my financial goals first
This is my non-negotiable.
I ask: What is my plan for this month?
That might mean:
- Transferring money into my emergency fund
- Contributing to a sinking fund (like travel or car maintenance)
- Automating my investments into retirement or a brokerage account
I believe in paying future me first. Saving and investing happens first not at the dead end
Step 4: Set realistic spending categories
Once my goals are paid, I move on to expenses. I split them into three jars for more detailed idea:
- Fixed expenses like mortgage, insurance, subscriptions.
- Variable essential like groceries,household supplies, childcare or camps
- Flexible spending: eating out, beauty, personal care, fun extras
This is where I check for potential cuts. Am I still using all those subscriptions? Did I spend too much on random shopping last month? Do I need a “no-spend” week coming up?
Step 5: Plan for irregular or seasonal expenses
Every month brings something different expense to us. That’s why I always check my calendar and ask:
- Are there birthdays, events, or school-related costs coming up?
- Do I have a trip planned?
Even things like shopping or holiday. This step protects my budget from surprise hits.
Step 6: Track weekly, not daily
I used to think that I had to track every money every day but that felt exhausting.
Each week, I:
- Log my spending
- Compare it against my planned budget categories
- Make adjustments if needed
If something’s going off track, I will rather know that expense early than be shocked at the end of the month.
Step 7: close out the month and reflect
At the end of every month, I will calculate:
- Total income received
- Total saved and invested
- Total spending
- Wins and challenges
I ask myself what I have worked, what didn’t, and how I can improve my budget next month. Maybe I have made my savings goal perfect but overspent on other expenses. Or maybe I crushed my side hustle income. Either way, I reflect so I can keep building momentum.
Why this routine works for me
This routine isn’t flashy. It doesn’t involve five budgeting apps or color-coded spreadsheets. It’s simple, repeatable, and built for real life.
The truth is consistency is what builds financial success. Not perfection.
Expert tip: Prioritize your financial goals first:-
When you start with savings and investing, you build wealth by default, not with leftovers. Even if it’s just $25 a month, that consistent habit adds up and rewires how you think about money.
