Budgeting 101: How to Make Your Money Work for You

Welcome to Budgeting 101! Let’s talk about how to get control of your money. With a few simple steps, you'll know exactly where your cash is going—and maybe even have some left over at the end of the month.

1. Get to Know Your Income (aka, Where’s All My Money Coming From?)

First up, let’s see how much money you actually have coming in each month. Whether it’s a part-time job, allowance, or some freelance side gigs, write down the total.

Quick tip: Don't count maybe money—like the ten bucks your friend still owes you from last month. If it’s not in your wallet, don’t count on it to cover this month’s budget.

2. Track Your Expenses (aka, Where Did It All Go?)

Now that you know what’s coming in, let’s figure out where it’s all going. Break your spending into three categories:

• Needs (Essentials): This is rent, food, transportation, and other stuff you genuinely rely on. Coffee is probably not essential, but that’s up to you.

• Wants (Nice-to-Haves): These are the fun things like subscriptions, eating out, or going to the movies. Basically, the things you enjoy but could live without if it came down to it.

• Savings (The Future-You Fund): Start small here, even if it’s just a little every month. Over time, these small amounts can add up to a helpful cushion.

Pro tip: If you’re ever on the fence about what category something belongs in, ask yourself: "Will I survive a month without it?"

3. Set Limits and Stick to Them

Now that everything’s categorized, give yourself a spending limit for each one. Your needs should come first, but make sure to leave room for a bit of fun and, of course, your future. Think of your budget like a traffic light: green for “good to go,” yellow for “take it easy,” and red for “whoa, slow down.”

4. Review and Adjust Monthly

Every month, take a look back and see how you did. Adjust your budget as needed—expenses can change, and maybe you find you’re saving more than you thought, or that you need to cut back somewhere. The key is to keep it flexible and realistic so it actually works.

In Short...

Budgeting doesn’t mean saying no to everything you enjoy—it’s just about knowing where your money’s going and making sure it’s helping you in the long run. A bit of planning now can mean less stress (and fewer surprises) later!