Build a Budget in 4 Simple Steps

Building a budget for the first time can seem intimidating. But it doesn’t have to be! Get started with these 4 easy steps:

Step 1: Calculate your monthly income and your fixed monthly expenses – like your phone bill, mortgage or rent payment and streaming service subscriptions.

Step 2: Set some goals! Figure out how much you want to spend each month on things like food, entertainment or debt payments – and how much should go into savings.

TIP: Some people use the 50-30-20 method, with 50% of income going to needs or essential expenses, 30% going to wants and 20% going to savings and debt repayment.

Step 3: Choose a strategy for achieving those goals. One option is the Envelope Method, where you withdraw your allotted spending money from the bank in cash each month and place it in envelopes corresponding with your spending categories. Once an envelope is empty, that spending for the month is complete.  

Different methods work for different people – do some research and find the one that works for you!

Step 4: Start following your budget plan! Review your progress regularly and adjust your spending as needed to meet your savings goals.

Helpful Tip: You don’t have to keep track of all your spending yourself! Budgeting apps or websites can help – and your financial institution may already have a solution to help you get started.

At CoreFirst Bank & Trust we offer Money Plan - a FREE, convenient, and easy to use budget tool that gives you a clear view of your monthly spending, debt, and balances.