If you’ve ever opened your budgeting app or spreadsheet and instantly felt overwhelmed, trust me, I’ve been there. For a long time, I thought budgeting meant rigid rules, endless calculations, and trying to predict every dollar. But the truth? That kind of perfection just isn’t realistic, especially when you’re balancing family, work, and everything life throws at you. In this article I share my budgeting routine to help you create yours!
Given all the things that life brings, I’ve created a monthly budgeting routine that’s flexible, intentional, and actually works. No overcomplicated systems. No guilt-tripping. Just real, repeatable steps that help me stay consistent with my money goals while still enjoying my life.
So if you’re new to budgeting, or just looking to refresh your approach, this is exactly how I plan and review my budget every single month.
Step 1: Review last month’s numbers
I always begin with a look back. Before I even start planning for the new month, I want to know how things went last month, no guilt, just awareness.
I ask myself:
- What was my total income?
- How much did I spend and where?
- Did I overspend in any categories?
- How much did I save or invest?
- Did any unexpected expenses pop up?
Sometimes it’s a flat tire. Other times, it’s way too much takeout. Whatever it is, I write it down so I can make adjustments moving forward. Looking back helps me move forward smarter.
Step 2: Map out my income
Next, I figure out how much money I’ll be working with this month. My income isn’t always the same month to month. I pay myself a salary from my business, but I also earn from side hustles like speaking, book royalties, and brand partnerships.
Here’s my rule: I always budget based on the lowest expected income. That way, if I earn more, it’s a bonus, not something I was counting on to make things work.
Step 3: Allocate to my financial goals first
This is my non-negotiable. I don’t start with bills or spending, I start with my goals.
I ask: What do I want my money to do for me this month?
That might mean:
I believe in paying future me first. Because if I wait to see what’s left at the end of the month, nothing will be left. Saving and investing happens at the beginning, not the end.
Step 4: Set realistic spending categories
Once my goals are funded, I move on to expenses. I split them into three buckets:
- Fixed expenses: mortgage, utilities, insurance, subscriptions
- Variable essentials: groceries, gas, household supplies, childcare or camps
- Flexible spending: eating out, beauty, personal care, fun extras
This is where I check for potential cuts. Am I still using all those subscriptions? Did I spend too much on random shopping last month? Do I need a “no-spend” week coming up?
I’ve learned that being intentional with my categories helps me feel empowered not restricted.
Step 5: Plan for irregular or seasonal expenses
Every month brings something different. That’s why I always check my calendar and ask:
Even things like back-to-school shopping or holiday gifts sneak up if I’m not planning ahead. This step protects my budget from surprise hits.
Step 6: Track weekly, not daily
I used to think I had to track every dollar every day but that felt exhausting. What works for me now is checking in weekly.
Each week, I:
- Log my spending
- Compare it against my planned budget categories
- Make adjustments if needed
If something’s going off track, I’d rather know early than be shocked at the end of the month. A weekly check-in keeps me grounded without the pressure of daily monitoring.
Step 7: close out the month and reflect
At the end of the month, I do a full close-out. I calculate:
- Total income received
- Total saved and invested
- Total spending
- Wins and challenges
I ask myself what worked, what didn’t, and how I can improve next month. Maybe I nailed my savings goal but overspent on groceries. Or maybe I crushed my side hustle income. Either way, I reflect so I can keep building momentum.
Why this routine works for me
This routine isn’t flashy. It doesn’t involve five budgeting apps or color-coded spreadsheets. It’s simple, repeatable, and built for real life.
The truth is consistency is what builds financial success. Not perfection.
And when your monthly budgeting routine is designed to reflect your life, your goals, and your reality, that’s when it becomes sustainable.
Expert tip: Prioritize your financial goals first
As a busy mom and entrepreneur, the biggest game-changer for me has been prioritizing my financial goals before everything else in my budget. When you start with savings and investing, you build wealth by default, not with leftovers. Even if it’s just $25 a month, that consistent habit adds up and rewires how you think about money.
FAQs about monthly budgeting routines
Here are some of the most common questions I get asked about my budgeting routine.
What do you think of the 50/30/20 rule, and does it work?
The 50/30/20 rule is a great starting point if you’re new to budgeting. It suggests spending 50% of your income on needs, 30% on wants, and 20% on savings and debt repayment.
I think it’s helpful because it offers a simple framework that takes both essential expenses and lifestyle choices into account, without being too restrictive.
That said, I believe every budget should be flexible and reflect your unique goals. If you’re aggressively saving, working toward debt freedom, or dealing with a high cost of living, your ratios might need to shift.
Personally, I treat the 50/30/20 rule as a guideline, not a rulebook. What matters most is that you’re consistently spending less than you earn and prioritizing savings and financial progress.
How do I stay motivated to stick with a budget?
Motivation often fades, which is why I lean on systems instead. Automate as much as possible, especially savings and bills. Set up visual reminders of your “why” (maybe it’s financial freedom, peace of mind, or traveling with your kids).
And be kind to yourself, slip-ups happen. The goal is consistency, not perfection. Celebrate small wins to keep your momentum going.
What if my income is irregular?
If you’re a freelancer, entrepreneur, or hourly worker with variable income, budget based on your lowest expected income each month.
Build a buffer or “income smoothing” fund when you have a higher-earning month. This way, you’re not scrambling during slower seasons. You can still have a reliable monthly budgeting routine, it just requires more flexibility and planning.
Is it better to use apps or spreadsheets?
It depends on your personality. Some people love the automation and visuals of budgeting apps. Others (like me!) prefer the control and customization of a good spreadsheet. Try both and go with what keeps you most engaged. The best tool is the one you’ll actually use consistently.
Create a budgeting routine that puts you in control
At the end of the day, your monthly budgeting routine should help you feel in control, not stressed or boxed in. It’s not about restriction, it’s about intention. When you plan your spending around your values and your goals, you’ll be amazed at how much progress you can make without feeling deprived.
You don’t need a fancy tool or a finance degree. You just need a system that fits your real life, and the discipline to show up for it month after month.
Start small. Stay flexible. And remember: every dollar you manage intentionally is a dollar working toward your freedom.