A budget should reflect your life — not restrict it. Follow these steps to create a realistic budget you’ll actually stick to.

Step 1: Know Your Net Income

Use your take-home pay after taxes and deductions. This is the real amount you have to work with each month.

Step 2: List All Your Expenses

Break down your monthly bills, subscriptions, groceries, transport, and entertainment. Don’t forget occasional costs like gifts or repairs.

Step 3: Categorize Your Spending

Separate your expenses into fixed (rent, loans) and variable (eating out, gas) categories. This makes it easier to adjust where needed.

Step 4: Set Priorities

Cover essentials first, then savings, and finally, discretionary spending. If the math doesn’t add up, reduce from the last category.

Step 5: Automate and Monitor

Set up auto-pay for bills and savings, then review your budget weekly to stay on track.