I’ll be honest with you: Budgeting used to feel like a pointless chore to me, something only people who couldn’t control themselves needed.
I lived by a simple system.
I’d set my sights on a goal—usually, something I craved, some reward for my hard work—then I’d grind until I could afford it, inching closer each day, watching my account grow just enough until, finally, I could make it mine.
That was my definition of financial planning.
Growing up, there were plenty of things I wanted that I couldn’t have. Somewhere along the way, that unfulfilled desire molded my mindset.
So, when I finally had the freedom to spend, my spending became my voice, a declaration of “I earned this.”
Budgeting?
It seemed like a limitation, a killjoy for people who didn’t understand living in the moment.
Until everything fell apart, and one day…
I lost everything.
The business I’d poured myself into, the job I’d left impulsively, the savings I’d chipped away at over time—it was all gone.
Suddenly, I was 26 years old, living under my parents’ roof once again, relying on them for everything.
The friends who once celebrated my wins seemed to drift away, maybe out of pity, maybe out of judgment. I watched as others, people I thought were falling behind me, moved forward in life.
They were buying homes, planning vacations, and getting married.
My life felt frozen, stuck in a place I never thought I’d be.
I felt like a failure—a loser.
Then, in that stillness, I realized the hard truth.
It wasn’t that I hadn’t worked hard, I worked my ass off to get where I am, but it was the fact that I hadn’t respected the money I earned.
All along, I’ve been skipping the most crucial part: Understanding my finances, planning with a purpose, learning how to sustain and not just spend money.
That’s where budgeting came into play, not as a restriction but as a guide, a foundation for my future from all my regrets.
If you’re earning, whether from a job, a business, or any other source, budgeting isn’t optional.
It’s essential.
Soon after I started earning again, the idea of budgeting and truly managing my finances took on a whole new meaning.
I knew I couldn’t go back to that place of feeling empty, watching everyone look at me with that face and seeing everything slip through my fingers because I hadn’t planned.
I was determined to never experience that level of financial vulnerability ever again.
I threw myself into learning.
I spent hours on YouTube, dove into blogs, and reached out to people whom I knew had mastered their money.
I wanted answers, a formula that would ensure I’d never end up stranded again.
But as I explored, I realized that budgeting isn’t a one-size-fits-all solution. It’s not a universal template you can apply to every income, every goal, or every person.
Each one of us is unique in what we earn, what we value, and how we dream of using our money.
Some of us want the stability of a home, while others seek the freedom to travel. For some, the goal is to retire early, for others, it’s climbing out from under a mountain of debt.
Each of us has our own version of financial freedom, and there isn’t a single budgeting rule or budget planner that can cover it all.
Sure, we have popular frameworks: The 50/30/20 rule, spreadsheets overflowing with formulas, detailed spending breakdowns, monthly budget reports.
But even with all these tools, I realized that budgeting still feels cumbersome and restrictive for many.
On top of that, people nowadays use different devices—Android, iPhone, MacBook, Windows—and just navigating these tools can become more complicated than it should be.
So, despite how diverse and personal our financial journeys are, I decided to tackle this money situation head-on.
This guide isn’t filled with formulas. It’s you and me creating a budgeting approach that respects each of our unique paths, making it accessible, flexible, and genuinely helpful.
Together, we will map out the ultimate guide to budgeting your finances, one that honors where you are and where you want to be.
The Only Way to Budget Your Money
So, what is budgeting, really?
If you ask Google, it might tell you that “a budget is a written plan that tracks your income and expenses over a set period of time.”
But, let’s be honest, that definition barely scratches the surface.
What does budgeting mean to you?
To each of us, it takes on a different shade, a different purpose. Some see it as a lifeline, while others feel it’s just another constraint on their hard-earned money.
Maybe you feel like you’re always one impulse purchase away from falling short on savings. Perhaps the loans linger a little too long, and you dream of a life without debt.
The truth is, budgeting is more than balancing numbers. It’s a tool for taking control of your financial path, of shaping each month around goals that matter to you.
At its core, budgeting isn’t about strict templates or complex calculations. It comes down to understanding three things: How much you earn, what you need to spend, and what you choose to do with what’s left.
This isn’t only about tracking income and expenses—it’s you giving purpose to every dollar, every decision, each day, every day.
So, how do you budget your money?
I promised to deliver something different here, something personal, not just another cookie-cutter template.
This guide is built around real experiences, one that walks you through budgeting as if you were just starting out—simple, straightforward, and lasting.
So, take a deep breath, sit back, and let’s dive into a budgeting method that’s as unique as you are.
Steps to Budget Your Money
1. Getting Things Ready
Start with a blank sheet of white paper and a pencil.
A large sheet will give you room to spread out your thoughts, sketch your ideas, and avoid the cramped, hurried feel of smaller spaces.
The pencil is intentional—nothing here is set in stone.
This is your space to experiment, refine, and make adjustments as you go.
Next, Find a quiet spot, somewhere free from distractions, a place where you can focus entirely on your financial goals.
Personally, I prefer doing this at night, when the world around me is silent, and I can think clearly without worrying about people seeing my work.
Now, draw three simple lines vertically down the paper, dividing it into three columns. Label the first column Income, the second Expenses, and the third Goals. This may seem basic, but this template will be a powerful tool, one tailored entirely to you.
It’s a small beginning, but from here, you’re setting up a budgeting process that’s going to be personal, manageable, and truly effective.
2. The Income Column
Now, let’s turn to the Income column.
Begin by writing down what you do and how much you bring in each month. Whether you’re working a high-paying IT job, hustling in marketing, freelancing, managing a warehouse, or working as a janitor, list it here.
This is your starting point—no judgment, just honesty.
You might wonder, “I only have one source of income—what am I supposed to do with the rest of this empty space?”
The blank space isn’t accidental.
We’ll come back to this space soon.
For now, focus on filling in the reality of your income, as it is, right here and now.
3. The Expenses Column
Next, let’s note down the Expenses column.
This is where you’ll list everything you pay for each month, an honest check up on where your money actually goes.
Start with the essentials: Rent, phone bills, electricity, and other recurring costs that keep the basics of life running.
Then, move on to the extras—the spontaneous expenses that creep in, like ordering takeout, shopping trips, or weekend travels.
Finally, confront the debts and lingering costs that may feel heavier, like loan payments, EMIs, credit card bills.
These are the expenses that sometimes haunt our bank statements, a reminder of past choices or necessary debts.
Write down how much you’re spending each month on each item, but for accuracy, jot down an average based on the last three months.
This exercise not only helps with logging numbers, but trust me, it reveals patterns, habits, and areas where you might not have realized just how much is slipping through.
It’s a time-consuming step, yet it will set the stage for the financial clarity and control you’re aiming for.
4. The Goals Column
This is where the magic happens.
The Goals column is the point where everything starts to make sense—where your income, expenses, and dreams meet on one piece of paper.
With your income and expenses mapped out, it’s time to give your money a direction.
Before diving into big dreams or debt-free fantasies, list down the foundational essentials: Health insurance, insurances for your car or pet, and an emergency fund.
These are non-negotiable goals, even if you already have them covered. Think of them as the groundwork, the security net that makes all your other goals possible.
Now, shift to what you really want—your true financial goals.
Maybe it’s owning a home, building a retirement fund, or finally breaking free from lingering debts and loans. Write these goals down in full detail: The total amount you need and, based on your current spending, a realistic timeline for achieving each one.
Look back at your paper now.
You’ve captured your income, outlined your expenses, and clarified your goals.
Everything that was once scattered or left to mental notes is now in one place, creating a clearer view of your financial life. This is where clarity turns into action. Hopefully, your dreams will start to feel possible.
5. Adjusting the Budget Plan
Remember the pencil?
It’s time to make those adjustments.
Start by taking a hard look at the Expenses column.
Identify the non-essentials—the expenses you can cut or scale back. Whether it’s online shopping, parties, or travel, look for anything that can be set aside, at least temporarily.
For those who feel stable and free from immediate financial concerns, carving out a bit for monthly entertainment is acceptable.
But for most of us, redirecting these savings toward our goals can make a transformative difference.
Adjusting your spending here means shortening the timeline on your goals. Each dollar you redirect brings you closer to achieving what really matters.
Once again, if you haven’t already secured the basics like health insurance or an emergency fund, prioritize these right away. They’re the safety net between you and unexpected setbacks.
I’ve seen too many people struggle to recover simply because they didn’t have these essentials in place.
When you look at the Goals column, you should be left with two main types of goals: Wants and Debts.
You now have a clearer picture of the amount you need for each goal, whether it’s owning a home, building investments, or paying off a loan.
If the timeline for each goal seems manageable after adjusting your spending, then stick with this plan.
But here’s a powerful step to consider: Increase your income.
This doesn’t mean changing careers overnight. It can start small—driving for a rideshare service, taking a part-time role, launching a small business on the side, or selling things you no longer need.
Any additional income brings you closer to your goals and fuels your daily motivation.
The secret to building wealth or achieving financial freedom is to grow that Income column over time.
Each time you revisit this budget planner, feel the drive to add something to your income column.
With every extra bit you earn, transfer it toward your immediate priorities in the Goals column.
If your current job isn’t enough, consider finding a higher-paying role, exploring new opportunities, or adding a second income stream.
The goal here is to reach a point where your income significantly outpaces your expenses.
When that happens, you’ll know you’re on the right track, moving steadily toward financial freedom.
When that happens, this piece of paper is more than just a budget—it’s a roadmap for transforming your life.
The Next Step: Automate Your Expenses
The next move is simple but powerful: Automate.
Automate every essential expense, from rent and utility bills to loan payments, investments, and other recurring costs.
Take out only what you need to live on each month, and let the rest follow the financial plan you’ve set.
This way, you’re left with little “extra” income in hand, reducing the temptation to spend on luxuries or impulsive purchases.
When it’s not easily accessible, you’re far less likely to spend it.
Remember, this budget planner isn’t to make things complicated with fancy spreadsheets or complex formulas. It’s to remove barriers and create consistency.
If you live alone, keep a copy of your budget visible—maybe stick it on your wall or as a wallpaper on your phone or laptop—to keep your goals front and center.
Unless you’re in a tough financial spot, I really don’t want you to be a penny-pincher.
But at the very least, have a clear, personalized system that guides every dollar you earn.
Your financial plan should be something you can follow consistently, a blueprint that aligns with your values and lifestyle.
At its core, a budget is your way of telling yourself what you want to do with your money. It’s a commitment to limiting yourself, a plan to take control of your finances, and a promise to yourself to use your income with purpose.
Stick to this personalized budgeting plan month after month.
Tweak the budget planner as you cut down on expenses, reach new goals, or increase your income.
Watch how this consistency, bit by bit, transforms your financial situation and sets you on the path to lasting stability.
