Budgeting 101 – How to Create a Plan That Works

A solid budget is the foundation of financial freedom. It helps you track income, control spending, and save for future goals, like buying a home or paying off debt.

• Step 1: Track Your Income and Expenses

List all sources of income and every expense, from rent to coffee runs. Understanding where your money goes is the first step to control.

• Step 2: Categorize Your Spending

Divide expenses into essentials (housing, utilities, groceries) and non-essentials (entertainment, dining out).

• Step 3: Set Realistic Goals

Decide how much to save or pay toward debt each month. Start small if necessary—it’s better to be consistent than overly ambitious.

• Step 4: Adjust and Monitor

Check your budget weekly and make adjustments as needed. Life changes, and your budget should too.

• Step 5: Use Tools to Stay Organized

Apps, spreadsheets, or printable templates can help you track spending and progress easily.

Tip: Pair budgeting with credit restoration efforts to maximize financial improvement and long-term stability.