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Let me be really honest with you about something.
Before I started budgeting properly, I had no idea where my money went. Like, genuinely zero idea. I’d get paid, feel briefly wealthy, start spending, and then somehow arrive at the end of the month wondering what happened. Every. Single. Month.
Does that sound familiar? Because I know I’m not the only one.
The thing is — nobody really teaches us how to budget. Not in school, not at home, not anywhere. We’re just expected to figure it out. And most of us muddle along until something forces us to get serious — a big bill, a financial scare, or that moment when you check your balance and your heart drops.
For me, it was becoming a twin mom. Suddenly the stakes were real and the margin for error was zero. I had to figure this out — fast.
And what I found was this: budgeting is not complicated. It’s not restrictive. It’s not about saying no to everything you love. It’s just about knowing where your money goes so you can decide where it goes instead.
So if you’re a complete beginner and the word “budget” makes you want to close this tab — stay with me. I promise this is going to feel a lot more manageable than you think.
What Budgeting Actually Is (And What It Isn’t)
Budgeting is simply a plan for your money. It’s you deciding in advance where your money goes — instead of wondering afterwards where it went. When you budget, you’re not restricting yourself — you’re giving yourself permission. Permission to spend on what you love without guilt, because you’ve already made sure the important things are covered.
Step 1 — Know Exactly What’s Coming In
Write down every single income source — your main salary, side hustle income, child benefits, and any other regular money. Add it all up. This is your total monthly income — the number your entire budget is built around.
Mo’s tip: If your income varies month to month, use your lowest recent month as your baseline. Budget conservatively and anything extra is a bonus.
Step 2 — Track Every Single Thing You Spend
You cannot budget what you don’t know. Spend one full month tracking every single purchase — yes, including the coffee, the parking, and the $2 app download. The most eye-opening exercise I ever did was going through my bank statements and categorising every transaction. I found forgotten subscriptions, spending habits I didn’t realise I had, and patterns that explained exactly why I was always broke by the 25th.
Make it easier: YNAB (You Need a Budget) connects to your bank and categorises everything automatically. New users get a free trial and most people save over $600 in their first two months. Or use my free Budget Planner to track manually — sometimes writing it by hand makes it feel more real.
Step 3 — List Your Non-Negotiables First
Start with the non-negotiables — rent or mortgage, electricity and water, groceries, transport, school fees, insurance, phone, and minimum debt payments. List them all, add them up, and subtract from your total income. What’s left is what you have for savings, personal spending, entertainment, and treats.
Step 4 — Pick a Budgeting Method That Fits Your Life
The 50/30/20 Rule — Best for Beginners
50% to needs, 30% to wants, 20% to savings and debt. Simple, flexible, and effective. You don’t have to track every purchase — just stay within your three buckets.
The Zero-Based Budget — Best for Full Control
Every dollar of your income is assigned a job until you reach zero unassigned dollars. This is the method YNAB is built around — every dollar has a purpose, nothing gets wasted.
The Pay Yourself First Method — Best for Building Savings
The moment your pay arrives, transfer a set amount straight to savings before doing anything else. Then live on what’s left. You never see it, so you never miss it.
Step 5 — Build In a Fun Budget (Yes, Really)
A budget with no fun money is a budget you’ll abandon within three weeks. Give yourself a monthly allowance for guilt-free spending — coffee, a meal out, a new lipstick. When it’s gone, it’s gone. But while it’s there? Spend it with zero guilt because you’ve already handled everything else.
Step 6 — Have a Monthly Money Date
Once a month, review how the month went versus how you planned it. Adjust next month’s budget and keep going. Your budget is a living document — the goal isn’t perfection, it’s progress.
Mo’s tip: Make your money date enjoyable. Light a candle, make your favourite drink, put on a playlist. You’re not being judged — you’re just looking at numbers so you can make better decisions.
Common Pitfalls to Avoid
- Being too strict from day one — start with 50/30/20 and build from there
- Forgetting irregular expenses — divide annual costs by 12 and add a monthly sinking fund
- Giving up after one bad month — a blown budget is data, not failure
- Not having an emergency fund — even $500 changes everything
You’ve Got This, Honestly
The moment you sit down with your numbers and make a plan, something shifts. You go from feeling out of control to feeling in charge. That feeling of financial control is one of the most empowering things a woman can have. And you deserve it.
Start today. Even just Step 1 — write down your income. That’s enough for today.
Drop a comment below — are you a budgeting beginner or have you tried before and given up? I’d love to know where you’re starting from!
You might also love: 12 Simple Money Habits That Save You Hundreds Every Month · 10 Real Ways to Make Extra Money on the Side · Free Budget Planner — Download Yours Here
