Lesson 6 of 10

How to make your first budget

A budget is a plan for your money before you spend it.

The easiest place to start is the 50/30/20 rule.

50% for needs: rent, food, bills, transportation.

30% for wants: eating out, fun, shopping.

20% for saving and paying off debt.

Example: $3,530 a month take-home

Needs (50%)$1,765

Wants (30%)$1,059

Saving and debt (20%)$706

Total$3,530

Uses the take-home pay from lesson 1. Your needs may cost more at first. That's normal: start where you are.

Key idea

Budget your take-home pay, not your salary. Then check in once a month and adjust.

Try it: our free budget planner builds your plan step by step.