Aug 12, 2025
BUDGETING 101: CREATING A MONTHLY PLAN THAT WORKS
<p>Managing your money doesn’t have to feel overwhelming or complicated. A monthly budget is a simple way to control your finances, reduce stress, and work towards your goals.</p><img src="/images/default-source/blog-article-images/budgeting-101-graphic-1.png?sfvrsn=d16f1b96_1" sf-size="100" alt="" /><p>Saving for a new car? Planning a wedding? Looking to stay on top of everyday expenses? A monthly budget tracks your income and outlines where it goes, so you can manage your money effectively and make steady progress. When you have a clear understanding of your finances, you can make smarter, more informed decisions, adapt to life’s changes, and build toward the kind of future you want.</p><p>Here are a few simple steps to help you create and maintain a monthly budget that fits your lifestyle and supports your goals.</p><h3>STEP 1: CALCULATE YOUR MONTHLY INCOME</h3><p>Start by writing down how much money you bring in each month. This includes your paycheck, side jobs, or any other consistent source of money. If your income varies, average the last few months to get a realistic number. Everything else in your budget builds from that amount, so take a few minutes to make sure it's accurate.</p><h3>STEP 2: TRACK YOUR EXPENSES</h3><p>It’s important to understand how you spend your money. Review your bank and credit card statements to find regular expenses like:</p><ul><li>Rent or mortgage</li><li>Utilities (gas, electricity, water, Internet)</li><li>Groceries</li><li>Transportation (gas, rideshares, public transit)</li><li>Insurance</li><li>Subscriptions (streaming, apps, memberships)</li><li>Dining out or entertainment</li><li>Loan payments</li><li>Childcare or pet expenses</li></ul><p>Also, include irregular expenses like birthdays, holiday gifts, or car maintenance. These often surprise people but a good budget helps you prepare for them ahead of time.</p><h3>STEP 3: WRITE DOWN YOUR FINANCIAL GOALS</h3><p>What are you trying to do with your money? Maybe it’s building a $10,000 emergency fund, paying off a credit card, or saving for a vacation.</p><p>Be specific, “Save $300 a month for my emergency fund” is much more effective than “Save more money.” Clear goals help you stay focused and make choices that align with them.</p><p>Download the Metro Credit Union mobile app to simplify money management. Explore features like automatic transfers that make saving convenient and consistent.</p><h3>STEP 4: CHOOSE YOUR BUDGETING METHOD </h3><p>You have options when it comes to budgeting. Here are a few popular methods:</p><h4>50/30/20 Rule: </h4><p style="margin-left:30px;">Allocate 50% of your income for needs, 30% for wants and 20% for savings or debt payments.</p><h4>Zero-Based Budget: </h4><p style="margin-left:30px;">Assign every dollar a purpose so your income minus expenses equals zero.</p><h4>Envelope Method: </h4><p style="margin-left:30px;">Use cash envelopes for different categories to limit overspending.</p><h4>Sub-Savings Accounts Method: </h4><p style="margin-left:30px;">Create separate savings accounts for specific goals and set aside funds each month.</p><h4>The 80/20 Budget:</h4><p style="margin-left:30px;">Save 20% of your income first, then use the remaining 80% for everything else.</p><h3>STEP 5: MAKE YOUR MONEY WORK HARDER</h3><p>A strong budget always includes saving, even small amounts add up over time. Treat savings like a fixed expense. Consider opening a high-yield account like a Money Market or Certificate for competitive rates and faster growth.</p><h3>STEP 6: USE TOOLS THAT MAKE IT EASIER </h3><p>No need to track your finances in the old-school way (unless that’s your style!). Metro members can access helpful tools right in online banking. Track spending, set savings goals and keep an eye on your progress in one place.</p><h3>STEP 7: MONITOR AND ADJUST YOUR BUDGET</h3><p>Check in weekly to review your spending and adjust as needed. Some months will look different than others, and that’s part of the process. Regular check-ins help you avoid surprises and stay on track. </p><h3>STEP 8: CELEBRATE YOUR WINS</h3><p>Any time you follow through on your plan, reach a goal, or just feel more on top of your money, take a moment to celebrate! Recognizing your progress helps you stay motivated and confident in your ability to reach even bigger goals.</p><p>Visit Save and Succeed, Metro’s free personal finance program. It can help you understand your habits, set goals, and build a plan you can stick with.</p><p><img src="/images/default-source/blog-article-images/budgeting-101-graphic-2.png?sfvrsn=d64448b8_1" sf-size="4114117" alt="" /></p><h3>MAKE YOUR BUDGET WORK FOR YOU</h3><p>Creating a monthly budget gives you a clear view of your money helps you make smarter money choices and stay on top of your finances. Start with your income and expenses, then build a plan that works for your lifestyle. It doesn’t have to be perfect or restrictive, just intentional.</p><p>Use Metro’s state-of-the-art online banking and mobile app tools to make it easier and keep adjusting until your budget works for your financial situation.</p><div><br /></div>
Learn how to create a budget that works for you, with practical tips, flexible methods, and tools to help you save and succeed.
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