5 Simple Budgeting Tips for Beginners

Starting your budgeting journey can feel overwhelming, but it doesn't have to be. Here are five practical tips that will help you take control of your finances.

1. Track Everything for One Week

Before you can budget effectively, you need to know where your money actually goes. Spend one week tracking every single expense — from your morning coffee to your streaming subscriptions. You might be surprised at what you find!

Tools like MyBudgetLog make this easy by letting you quickly add transactions as they happen.

2. Start with Categories That Matter to You

Don't overcomplicate things with 50 different categories. Start with the basics:

• Essentials: Rent, utilities, groceries, transport
• Lifestyle: Entertainment, dining out, subscriptions
• Savings: Emergency fund, investments

You can always add more specific categories later as you get comfortable.

3. Use the 50/30/20 Rule as a Starting Point

A simple framework to follow: allocate 50% of your income to needs, 30% to wants, and 20% to savings. It's not perfect for everyone, but it's a solid starting point.

4. Review Weekly, Not Daily

Checking your budget obsessively every day can lead to burnout. Instead, set aside 10 minutes once a week to review your spending. Sunday evenings work well for many people.

5. Be Kind to Yourself

You will go over budget sometimes. That's okay! Budgeting is a skill that improves with practice. Don't beat yourself up — just learn from it and adjust for next week.