Build Your First Budget!

Your Money's New Best Friend

Author

Chandler Swaney
July 30, 2025 • Estimated Reading Time: 4 minutes

If you've been tracking and categorizing your spending, you've already done the hardest part: seeing your money map! Now, it's time to take control of that map and build your first budget. This is a flexible plan that directs your money where you want it to go, helping you reach your personal goals.

You know where your money went. Now, let's give every dollar a job before it leaves your account. This is the core of effective budgeting!

This info may sound repetitive and it should! That’s what is, it’s assigning your dollars a home every month. YOU control your money, don’t let it control you.

Your Budgeting Action: Create Your First Flexible Budget

  1. Choose Your Tool: Pick what works for you: a simple spreadsheet (like Google Sheets/Excel), a budgeting app (like EveryDollar, YNAB), or even just a notebook.

  2. List Your Income: Write down your total take-home income for the month.

  3. Assign Every Dollar a Job: Based on your categorized spending from last week, decide how much you plan to spend or save in each category this month.

    • Needs: (e.g., Rent/Mortgage, Utilities, Groceries, Transportation) - These are non-negotiable.

    • Wants: (e.g., Dining Out, Entertainment, Shopping) - Where can you be flexible?

    • Savings Goals: (e.g., Emergency Fund, Down Payment) - Pay yourself first!

    • Debt Payments (Extra): (e.g., Accelerating loan payoff)

    • The Goal: Make your "Income - All Jobs = $0." Every dollar has a purpose!

  4. Be Realistic & Flexible: Your first budget won't be perfect. That's okay! It's a living document. The goal is to create a plan you can actually follow, not one that makes you feel deprived.

Why this matters: A budget gives you power. It helps you see upcoming choices, avoid overspending, and intentionally direct your hard-earned money towards what truly matters to you and your family.

Having a budget has changed my whole way of going about things. I'm surprised how it strengthened my own willpower. When walking down the aisle of a store and I see something that I want, one of two things usually happens: I either think to myself, "It's not in my budget, just skip it," or I find that little bit of “flex” in my budget that I'm willing to sacrifice, like maybe not ordering out food later that month and trading that want for another.

Your Investing Insight: Budgeting fuels your investments

The discipline you build by sticking to your budget is your secret weapon for investing. Every dollar you intentionally save or redirect can become a powerful contribution to your investments, putting your money to work for your future self. It's how consistent habits turn into significant wealth over time.

📈 Your Next Steps:

Now that you've drafted your first budget, the real fun begins: putting it into action! Try to stick to your planned spending for the next week. Don't worry if it's not perfect – every day is a new chance to learn and adjust.

Next week, we'll talk about common budgeting challenges and how to overcome them, so your budget becomes a helpful tool, not a source of stress.

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Disclaimer: This newsletter offers general financial education, not personal advice. For your specific situation, please consult a qualified financial professional.