How to manage your monthly budget: 5 practical strategies

Why a monthly budget matters

Budgeting isn't about giving everything up. It's about knowing where your money goes and making intentional choices. Without a plan, it's easy to reach the end of the month wondering "where did my paycheck go?".

1. Know your net income

The first step is knowing exactly how much you earn after taxes. Not the gross amount — the net, what actually lands in your account.

If you have variable income (freelance, bonuses, overtime), use the average of the last 3 months as your baseline.

2. Categorize your expenses

Break your spending into clear categories:

• Fixed: rent, mortgage, insurance, subscriptions
• Variable necessities: food, transport, utilities
• Discretionary: entertainment, shopping, dining out

With Balance, you can track each category automatically and see exactly where your money goes.

3. Apply the 50/30/20 rule

A simple but effective framework:

• 50% for needs (housing, food, transport)
• 30% for wants (entertainment, shopping, travel)
• 20% for savings and debt repayment

It's not a rigid rule — adapt it to your situation. The point is to have a structure.

4. Check weekly

Don't wait until the end of the month to review. A 5-minute weekly check lets you:

• Spot unusual expenses early
• Course-correct before it's too late
• Stay aware of your financial health

5. Build an emergency fund

Before thinking about investments or ambitious goals, make sure you have at least 3 months of expenses covered. This gives you the peace of mind to handle unexpected events without stress.

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Managing your budget doesn't have to be complicated. With the right tools and a bit of discipline, you can take control of your finances and build the future you want.