A budget is simply a plan for how you’ll use your money. You’re telling your money where to go instead of wondering where it went. Where should you start? The first step is to know your income. Whether from a side gig or a paycheck, start with how much money you bring in. Once that is all figured out, track your spending. You don’t have to do this alone. There are tools and methods out there to use.

Some banks or credit unions have an expenses monitoring tool built into the mobile app. There are also apps out there to use, like Goodbudget. Use a spreadsheet or pen and paper if you don’t feel comfortable linking your accounts to an app. The key here is to use the method that’s right for you! 

Need a step-by-step guide to help you create a budget? Check out this Nerdwallet article.

Budgeting isn’t one-size-fits-all. The key is to find a method that works with your lifestyle, goals, and personality. Here are four popular approaches to consider:

• Pay Yourself First – As soon as you get paid,  put a portion of your check into your savings, before anything else. This approach helps establish financial habits and prioritize long-term goals.
• 50/30/20 Rule – This method is super beginner-friendly: 50% of your income goes to needs (rent, groceries, bills). 30% to wants (fun stuff like streaming, eating out, hobbies) 20% to savings and debt repayment. Some prefer a different percentage breakdown, such as the 60/30/10 Rule. 
• Zero-Based Budgeting – Every dollar has a place to go. You assign every dollar a category, whether that’s a need, want, or savings, until you get to zero. This method may take some effort, but it’s a way to know exactly where everything is going.  
• Cash Envelope System – You set a spending limit for each category (like groceries, gas, or eating out), withdraw that amount in cash, and keep it in labeled envelopes. Once an envelope is empty, that’s it! No more spending in that category. It’s a hands-on way to control spending and avoid overspending. There are digital versions of this method on apps like Goodbudget.

Budgeting isn’t about restriction—it’s about freedom. Whether you’re using an app or a notebook, the goal is to make your money work for you. Whether you’re saving for something big or just want to stop stressing over money, the right tools and approach can make all the difference. Start small, stay curious, and remember: every smart money move you make adds up over time.