How to Make A Monthly Budget in America: 8 Tips for New Immigrants
Creating a monthly budget (And sticking to it!) is the first and most crucial step you must take for financial health. A budget gives you critical information; how much money you have coming in, how much is going out, and where it’s going. We’ll show you how to make a monthly budget in American with 8 tips for new immigrants!
There are several ways to budget, and everyone will have a method that works best for them. We’ll explore how to make a monthly budget in Excel, how to make a monthly budget in Google Sheets, show you a monthly budget calculator to do the math for you, and how to create a budget online with free programs.
How to make a budget plan
A budget only works if you can stick to it, and in order to stick to it, a budget must be realistic. It would be great for our wallets to eliminate all non-essential spending, but that isn’t realistic. Nor is it much fun! You work hard for your money, so you are entitled to spend some of it on things you enjoy.
But most people don’t make enough money to indulge in everything they enjoy. The key to a realistic budget plan is to think about what you enjoy the most. Maybe that’s going out to dinner once a week, and the money for those dinners has to come from somewhere.
Next, look at the things you spend money on that you could live without. A lot of times, these are things we do out of convenience or habit. Buying coffee before going into the office and ordering lunch out, for instance. Instead of doing those two things several times a week, make coffee and lunch at home and bring them to work. The money that saves can go towards your dinners out.
How to make a personal budget
There are a million methods to budgeting but we prefer a very simple one: the 50/30/20 method. Determine your net (post-tax) monthly income and list your monthly expenses. Break your budget down this way:
50%: Essential expenses like housing, utilities, auto costs, debt repayment, insurance, groceries, etc.
30%: Non-essential expenses like dining out, entertainment, clothing, etc
20%: Financial goals like saving for an emergency fund, a home, or education.
This budget calculator can do the math for you.
How to make a monthly budget sheet
The two most popular programs for budget sheets are Excel and Google Sheets.
Excel has several pre-made budget templates to choose from. This is the step-by-step guide to using the templates. Using these templates means the formulas are in place, and you don’t have to create them.
Google Sheets has a 50/30/20 template, and Google Sheets are collaborative, handy if you and your partner budget together.
How to budget online
There are a lot of online budgeting programs, but our favorite is Mint. Mint is free, easy to use, and secure. Mint is owned by Intuit, the same company that owns Turbo Tax. If it’s secure enough for your tax returns, it’s secure enough for your budget!
Much of the budgeting work is done for you. Link your financial accounts and Mint will pull in and categorize your income and expenses. Mint will give you budgeting recommendations, and you can customize them to your liking.
Our best budgeting tips
Create a realistic budget plan
Leave some room for things you enjoy
Eliminate some convenience spending
Use the 50/30/20 method
Use a budget calculator
If you prefer a budget sheet, use a ready-made template to make it easier
Consider Mint, an online program that automates many facets of budgeting
Let Upwardli help you find the best financial products for your financial goals
