How to Create a Budget You’ll Actually Stick To

Every other financial advisor tells you you need a budget, but do you? Let me ask you this: do you want to travel, buy a car, purchase a house, or give generously? Do you want to buy that coffee without the guilt of spending money you don’t have? Have you been wanting to save $1k, $5k, or $10k+ for a while, but nothing has worked? If you answered yes to any of these questions, I am here to tell you that you not only need a budget, you want it!

I am a huge advocate for creating a budget and doing everything in your power to stick with it. Not because I love pain and suffering or because I like to limit myself, but for the complete opposite. I love having a budget because doing so gives me the freedom to do the things I once only dreamed of. How? Stick around, and I will tell you!

Last year, my husband and I were able to save the down payment for our first home. Yes, you heard it right. Now, before you go on researching what we do for a living, I’m going to go ahead and tell you that we are just normal people. In fact, we have regular low-income jobs, and no, we did not win the lottery. The only differences I can point to are, first, that we trust in God-we give Him all the glory; and second, we stick to a budget. Every month, we sit down and go over how we did last month, make the necessary adjustments, and then create the budget for the next month. We call it “Finance day.” You can call it whatever you want as long as you do it at least once a month. 

I’m going to give you a step-by-step process for creating a budget and sticking to it. You can use it as is, or you can tweak it as much as you want. But I’m encouraging you to follow a budget because the difference is life-changing. Let’s begin!

Step 1: Get honest about your starting point

List your monthly income (take-home). This includes paychecks, side incomes, bonuses, etc. You only want to count what actually hits your bank account. My husband and I combine our finances by adding both of our incomes and treating it as one. I strongly recommend you do this with your spouse. After you list all your monthly income, list your fixed expenses (rent/mortgage, utilities, phone, insurance, debt minimums, subscriptions, etc.) and variable expenses (groceries, gas, eating out, fun, gifts, personal care, etc.). There is no need to guess with these numbers. Just look at your last 1-3 months of statements, let the numbers tell the truth. 

Step 2: Give every dollar a job (zero-based style)

Start with income at the top (Income – Expenses = 0). Fund your needs first. These are housing, food, transportation, basic utilities, and minimum debt payments. Then fund goals. These are things like an emergency fund, extra debt payments, sinking funds (car repairs, Christmas, travel). Lastly, fund the wants. These would be your eating out, entertainment, subscriptions, and “fun money.” If you end up negative, reduce wants first, then look for ways to trim variable needs (cheaper groceries, less driving, etc.).

Pro-tip: Use the 50-30-20 rule. This means you assign 50% to needs (living expenses), 30% to wants, and 20% to savings. In our household, we first give 10% to God in offerings to our church, and then we budget the rest. We try to hit our savings goals before we pay anything else. This way, we make sure we are staying on track on our financial goals.

Step 3: Create simple spending categories

You can create as many categories as you want, but I encourage you to keep it simple so you’ll actually use it. Some examples of categories are housing (rent/mortgage, utilities), transportation (gas, maintenance, bus/Uber), groceries (food, health supplies), eating out (restaurants, coffee, snacks), debt (loans, credit cards [minimum + extra]), savings/goals (emergency fund, trips, big purchases), personal & family (Clothes, haircuts, kids’ activities), Giving (tithes, offerings, charity). Assign a dollar amount to each category until your income is fully “assigned.”

Step 4: Choose your tracking method

There are countless budgeting apps and spreadsheets out there. My recommendation is to choose one that fits your personality, not just what sounds fancy. You can go as simple as paper and pen (or envelopes and cash), or as advanced as using a budgeting app that connects to your bank to track your expenses. It’s up to you and what works best for you and your family. The best method is the one that you will use. 

This is NOT sponsored, but my husband and I use Monarch money. We’ve been using it for over a year, and we really like it. You can use this link to get 50% off Monarch today: Monarch money 50% off.

Step 5: Review monthly and tweak, don’t quit!

This might be the most important step of all. Any budgeting method will be as good as you stick to it. Set aside a day every month to sit and review your budget. At the end of the month, ask: what worked? What didn’t? What surprised me? Then adjust next month’s numbers. Keep in mind that a budget is a living document, not a report card. Make sure to celebrate small wins. Paid all bills on time? Reduced eating out? Saved $50? It all counts!

Tips to help you stick to your budget

1. Plan for real life, not a perfect month

You know life will happen, so… 

• Add sinking funds. These are small monthly amounts you set aside for irregular expenses such as car repairs, gifts, school fees, travel, etc.
• Expect “surprise” expenses. Build a small “miscellaneous” line, so surprises don’t wreck the whole plan.
• Adjust for seasons. You know that Christmas, school, and summer travel happen every year, so budget accordingly. 

2. Build a weekly money rhythm

Treat budgeting as creating a habit or exercising a muscle.

• Set a 15-20 minute weekly date. Do your best to do it on the same day/time each week (Sunday night, Friday morning, etc.), so it becomes a habit.
• In that time, you can review (check what you spent vs. what you planned), update (move numbers and adjust categories if needed), and decide (ask yourself, “what does my money need to do for me this coming week?”)

3. Use guardrails, not willpower

Don’t just rely on your willpower; use technology in your favor, not against you.

• Automate what you can. Automatic transfers to savings, automatic bill pay for fixed expenses.
• Create friction for overspending. Turn off one-click purchases, delete stored cards from shopping sites, and lower card limits if needed.
• Try cash or separate accounts for problem areas. Groceries, eating out, or fun money in cash or a separate debit account.
• Give yourself a small “no guilt” allowance. Even just $10–$20 you can spend freely helps you not feel deprived.

4. Shift your mindset
   • Budgeting is permission, not punishment. You’re telling your money what it can do, not just what it can’t.
   • You will “mess up” sometimes. That’s data, not failure. You adjust and keep going.
   • Tie your budget to a “why.” Getting out of debt, peace at home, generosity, travel, leaving a legacy—your “why” keeps you in the game when it’s not fun.

Lastly, be patient with yourself and trust the process. It might take you a few months to get used to following a budget, but I promise it will be worth it in the end. You can’t put a dollar amount on the peace of mind and freedom you will gain from knowing exactly where your money is going and that you are on the right track to accomplishing your financial goals.

Like I said at the beginning, I’m a huge advocate for budgeting because it gives me the freedom to do the things I want to do. I like to say, “let’s talk about money, so we don’t have to talk about money.” Having a budget has allowed me to do the things I’m passionate about, like traveling, funding spiritual events in my home country, doing mission work, and sharing with those who need it. I’m fully confident that if you start a budget and stick to it, soon you will be able to do the things you love as well!

Download my free budget template here!

Photo by Sincerely Media on Unsplash