Creating Your First Budget: A Simple Guide to Telling Your Money What to Do

June 13, 2025 Don Briscoe No comments yet

creating your first budget with Monarch Money

TL;DR: Ready to finally boss around your money? This hilarious but real guide to creating your first budget breaks it all down, including how the 50/30/20 rule can rescue your wallet. Let’s get into it.

Ever looked at your bank account and wondered, “Where did it all GO?” You’re not alone. In fact, according to a 2024 NerdWallet survey, 74% of Millennials and Gen Zers say budgeting stresses them out more than finals week. But here’s the plot twist: creating your first budget doesn’t have to feel like financial algebra.

This power-packed, positive-vibes guide is here to help you finally tell your money where to go (nicely, of course). Whether you’re fresh out of college or finally done winging it, this budget breakdown is about to make life smoother, simpler, and dare we say… kind of fun?

Why Creating Your First Budget Changes Everything

Creating your first budget is more than writing down how broke you are. It’s a roadmap for your future, a GPS that tells your money where to go before it ghosts you. With inflation doing TikTok dances on our paychecks, it’s never been more important to get control.

What Happens When You Don’t Budget

Surprise overdraft fees

Never knowing if you can afford brunch

That feeling of financial free-fall right before rent hits

Without a budget, money leaks out of your life like iced coffee through a cracked lid.

The 50/30/20 Rule: Your Budgeting BFF

Let’s keep it simple with the classic 50/30/20 rule. This method splits your income into three smart categories:

50% Needs

Rent or mortgage

Utilities

Groceries

Transportation

30% Wants

Streaming subscriptions

Dining out

Travel or self-care

20% Savings & Debt Repayment

Emergency fund

Retirement account

Credit card payments

Using this method, you’re not just budgeting — you’re giving your money a job, and everyone’s finally showing up to work on time.

Budgeting Tools That Won’t Bore You

You don’t need a dusty Excel spreadsheet from 2007. Try one of these Gen Z-approved tools:

Monarch ( Editor’s Pick)

Visually stunning interface

Easily track income, spending, goals

Syncs with bank accounts, customizable categories

Review Box: Monarch App – Try it!

Rating: 4.8/5 “Monarch makes budgeting feel less like a chore and more like planning your dream life. The UI is gorgeous, and the setup is super beginner-friendly. Perfect for creating your first budget.”

Other Budget Tools

You Need A Budget (YNAB) – Built for strategy nerds who love control

EveryDollar – Great if you want a zero-based system

How to Actually Create Your First Budget

Let’s keep it real. Here’s your no-fluff, no-financial-degree-needed checklist:

Calculate your monthly income (after taxes)

List your fixed expenses (rent, car note, insurance)

Track your variable spending (groceries, gas, coffee splurges)

Categorize using the 50/30/20 rule

Review and adjust weekly

Pro Tip:

If you’re a gig worker or side hustler, average your last 3 months’ income for a realistic picture.

Budgeting Isn’t Just About Spending Less

It’s about spending better. Budgets give you permission to live your life intentionally. Want to travel? Buy a house? Go back to school? Budget for it. That’s not restriction, that’s empowerment.

“Budgeting gives me clarity. I’m not scared to check my bank account anymore.” — Jamie T., 25, Newark, NJ

Quick Budget Wins for Beginners

Use cash for eating out to stay mindful

Automate savings (out of sight, out of temptation)

Review monthly subscriptions (do you really need 4 streaming services?)

Link Love – Learn More

NerdWallet: How to Start a Budget

CNBC: Why Budgeting Still Matters in 2025

Consumer.gov: Making a Budget

Read: How to Spot a Scam Before You Click – PersonalOne

Read: Boost Your Credit Score 100 Points – PersonalOne

FAQs

Q: What if my needs are more than 50% of my income?
A: That’s okay! Adjust your ratios and work toward lowering fixed expenses over time. Budgeting is flexible.

Q: Should I budget weekly or monthly?
A: Start monthly, but check in weekly to stay on track.

Q: How do I budget with inconsistent income?
A: Base your budget on your average income from the past few months.

Closing Summary

Creating your first budget isn’t about depriving yourself—it’s about designing your life. With tools like Monarch, the 50/30/20 rule, and a bit of humor, you can make a budget that works for YOU. Remember, it’s your money. Time to tell it what to do.

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Financial Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor for personalized recommendations.

Creating Your Budget: A Simple Guide to Telling Your Money What to Do

TL;DR:

Ready to finally boss around your money? This hilarious but real guide to creating your first budget breaks it all down, including how the 50/30/20 rule can rescue your wallet. Let’s get into it.

Ever looked at your bank account and wondered, “Where did it all GO?” You’re not alone. In fact, according to a 2024 NerdWallet survey, 79% of Americans find at least some aspect of money daunting, with Gen Zers particularly intimidated by financial topics .(NerdWallet)