Budgeting Basics: How to Take Control of Your Money

What even is a budget?

A budget is a plan for how you’re going to use your money each month. That’s it. It’s not a punishment or a chore, it’s just a way to stop your money from disappearing without knowing where it went.

Think of it like this:

You’re the coach. Your money is your team. A budget tells each dollar where to go so you can actually win, whether that means paying your bills, saving for something, or just not feeling broke 24/7

Why does budgeting feel so hard?

Because no one ever teaches you how to do it. Most people start working, get a paycheck, spend it, and just hope for the best. But without a plan, money gets spent on whatever’s in front of you - fast food, clothes, online shopping - and you’re left wondering why your account is empty.

A budget helps you:

• Know what’s coming in (your income)

• Know what’s going out (your spending)

• Make sure you’re not stuck just reacting to money stress

Step-by-step: How to start budgeting from zero

You don’t need to be good with numbers. You don’t need a spreadsheet. Here’s how to start:

Step 1: Know what you bring in

Look at your last paycheck(s) and figure out how much money you actually take home each month after taxes. This is called your net income, it’s what you have to work with.

Example:

You make $17/hour and work 35 hours a week. That’s $2,380 per month after taxes.

That’s your budget. Not your hourly wage. Not your salary. Your take-home amount.

Step 2: List out your fixed expenses

These are the bills that don’t change much each month, the stuff you must pay for.

Examples:

• Rent: $750

• Car payment: $300

• Insurance: $115

• WiFi: $60

• Minimum debt payments: $50

• Subscriptions: $30

Total fixed expenses: $1,305

Step 3: Estimate your variable expenses

These are the categories that do change but you still need to plan for them.

Examples:

• Groceries: $250

• Gas: $120

• Eating out: $150

• Fun money: $100

• Haircut, gifts, etc.: $50

Total variable expenses: $670

Step 4: Choose a simple rule to follow

If you’re not sure what’s “normal,” use the 50/30/20 rule as a guide:

• 50% Needs → rent, bills, groceries, gas

• 30% Wants → shopping, takeout, hobbies, Netflix

• 20% Future You → savings, debt payoff, investing

If that doesn’t work for your income or expenses, don’t worry, it’s just a starting point.

Step 5: Plug your info into a budget tool (like the one within Equity’s Online Banking)

Here’s where you get your time back. Inside Equity Bank’s online banking, you can:

• Link all your accounts (yes, even from other banks)

• Track spending by category (automatically)

• See trends over time

BUT, you have to set your budget parameters. That means you tell the tool, “I only want to spend $150 on eating out” and it’ll track how close you’re getting to that limit.

Not sure what your parameters should be? I can help. That’s what I’m here for. We’ll look at your actual numbers and build a plan that feels realistic and livable not restrictive.

What’s the goal of a budget?

A budget is not just about “spending less.” It’s about:

• Feeling in control of your money

• Knowing how much you can spend without guilt

• Reaching goals like buying a car, moving out, saving for travel, or paying off debt

When you have a budget, you don’t have to guess. You know what’s okay to spend — and what needs to wait.

Bonus: Review it monthly

Your budget isn’t set in stone. If your income or bills change, update it. If you overspent last month, don’t give up just adjust and keep going.

Need help?

If you’re using Equity Bank’s tool but don’t know how to set your categories or limits reach out to me and I’ll walk you through it.

You don’t have to do this alone.