How to Start Budgeting (and Actually Stick With It)

Let’s be real — understanding how to budget isn’t something most of us just know how to do. But the good news? With a few simple steps (and maybe a little teamwork), you can totally change your financial future.

A few years back, we were in the same boat as a lot of people. We had just started a business, and suddenly, our bank account was dipping into the red more often than we’d like to admit. When we both had steady paychecks, we thought we were doing fine — we didn’t spend recklessly, but if there was money in the account, that was a green light to spend. Then reality hit: the income slowed, the bills didn’t, and the Insufficient Funds alerts started rolling in.

That’s when we knew we had to stop, assess, and take control of our finances.

Related: [Meet the Duo]

The first thing we did? We started tracking every single thing we spent. And something amazing happened — we realized that when we made decisions before the money left our account, we had way more control. We found out that we could live on much less than we thought, even when things felt tight.

Since then, our finances have had their ups and downs (because life happens), but one thing has stayed consistent: we always have a plan. And that plan has helped us avoid the panic of an empty bank account ever since.

Budgeting doesn’t have to be complicated. The basic idea is simple: spend less than you make. But simple doesn’t always mean easy, especially when you’re just starting out.

Here are a few steps that helped us — and can help you too — build a budget that actually works.

1. Watch Your Money

Before you can make a plan, you have to know where your money is going. Track your expenses for a month and pay attention to your spending habits. You might be surprised by how much those “little” expenses — like coffee runs or takeout — really add up.

There are tons of ways to track spending. You can go old-school with a spreadsheet or use an app like Monarch (monarch.com). It automatically connects to your accounts, tracks your expenses, and even creates graphs and charts to help you see where your money’s going.

2. Determine Your Expenses

Next, go through your monthly bills and separate them into two categories:

• Mandatory expenses: Things you have to pay every month (like rent, a mortgage, car payments, or student loans).

• Discretionary expenses: Things that change from month to month or that you could adjust (like groceries, gas, or entertainment).

  
  

When we got serious about budgeting, one of our first big changes was cutting cable and switching to streaming services like Netflix. That one move saved us over $100 a month — and honestly, we didn’t miss much after the first couple of weeks.

3. Calculate Your Income

Now, look at all your sources of income. If you’re paid from a single job, this part’s easy. But if you’ve got multiple income streams — like side gigs, freelance work, or variable pay — average them out so you can get a realistic monthly estimate.

If you find your expenses are higher than your income, it’s time to make a change. Look for ways to trim spending or consider adding a small side hustle to help balance things out. It doesn’t have to be forever — just enough to help you breathe a little easier.

4. Put It All Together

Once you’ve mapped out your income and expenses, create your budget. Assign every dollar a purpose before the month begins. Then, track your spending to make sure you’re sticking to it.

Be patient with yourself — it might take a few months to get it right. You’ll probably need to tweak things as you go, and that’s completely normal. The goal isn’t perfection. It’s progress.

Budgeting gives you power — the power to decide how your money works for you instead of the other way around.

We’re not perfect budgeters (no one is), but we’re miles ahead of where we started. And that’s what matters most.