How To Create A Budget In 2023 (Example Budget)

Finance Fox
6 min readMar 11

Transform Your Finances with These 7 Simple Budgeting Steps

Budgeting is one of the most important things you can do for your finances. According to a survey by the National Foundation for Credit Counseling, only 41% of Americans use a budget. This is concerning because budgeting helps you take control of your money and achieve your financial goals. Creating a budget can seem daunting, but it is simpler than you think. Here are 7 steps to creating your first budget in 2023.

Photo by Kelly Sikkema on Unsplash

Step 1: Determine your Income

The first step in creating a budget is to determine your income. This includes your salary, any side hustles, or any other sources of income you may have. Be sure to calculate your take-home pay, which is the amount you receive after taxes and other deductions. Once you have determined your income, you can move on to the next step.

Step 2: Calculate your Expenses

The next step is to calculate your expenses. This includes all the money you spend each month, such as rent, utilities, groceries, transportation, entertainment, and any other expenses you have. To get an accurate idea of your expenses, look back at your bank and credit card statements from the past few months. Add up your expenses for each category and calculate your total monthly expenses.

Example Budget Found Online (You Can Find Free Templates Online As Well)

Step 3: Create a Percentage-Based Budget (Example Budget)

Now that you know your income and expenses, it’s time to create a budget. One of the easiest ways to create a budget is by using a percentage-based budget. This means that you allocate a certain percentage of your income to each expense category. For example:

  • Housing: 30%
  • Transportation: 10%
  • Food: 15%
  • Debt Repayment: 10%
  • Savings: 10%
  • Entertainment: 5%
  • Miscellaneous: 20%
Finance Fox

Writer, Finance, Self Improvement, Self-Reliance, Personal Finance and Everything In Between.

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