A budget doesn’t have to be complicated. In fact, the simplest budgets are often the ones people actually stick with. If you’re just starting out—or you’ve tried budgeting before and felt overwhelmed—this quick, beginner-friendly method will help you get clarity fast. You only need five minutes and a single number: your monthly take-home income.
If you want a deeper habit-building system to pair with your budget, you may also like:
👉 The Penny Method: How Small Daily Habits Build Real Wealth
Now let’s build your budget.
1. Start With Your Take-Home Income (1 Minute)
Write down the amount of money you bring in after taxes each month.
This is the number that truly matters—your real spending power.
If your income changes from month to month, calculate an average from the last three months.
Your number:
👉 “My monthly take-home income is $_____.”
This one line becomes the foundation for your entire budget.
2. List Your Must-Haves (1 Minute)
These are expenses you cannot avoid:
- Rent or mortgage
- Utilities
- Groceries
- Transportation
- Insurance
- Minimum debt payments
Add them together. This gives you your “non-negotiable” spending.
Goal: Aim to keep must-haves around 50–60% of your take-home pay when possible.
3. Add Your Monthly Commitments (1 Minute)
These are recurring bills that aren’t essential to survival but still appear every month:
- Phone bill
- Internet
- Streaming services
- Subscriptions
- Gym membership
- Childcare or school costs
- Monthly services
Add these to your must-haves.
This total shows you how much of your income is already spoken for.
4. Assign a Simple Spending Limit (1 Minute)
Here’s where people usually overcomplicate things, but you’re not going to.
Use the 3-Bucket Budget:
- Must-Haves
- Commitments
- Everything Else (Flexible Spending)
After you subtract your must-haves + commitments from your take-home income, the leftover amount becomes your flexible budget.
This one number covers:
- Takeout
- Coffee
- Shopping
- Entertainment
- Personal care
- Social spending
You do not need dozens of categories.
You just need this one number.
5. Do a 10-Second Reality Check (30 Seconds)
Ask yourself:
“Does my spending match what I say I want?”
A budget’s purpose is alignment—not restriction.
If you want to:
- Save more
- Stress less
- Break paycheck-to-paycheck cycles
…your money habits should support those goals.
Sometimes one tiny adjustment—like lowering one subscription—opens up more space than expected.
A Budget You Can Actually Stick To
This 5-minute budget gives you clarity fast. It isn’t about perfection—it’s about direction. You can refine and adjust it over time, but today you’ve taken the most important step: creating a simple system that works for your life.
If you want even easier wins to support your new budget, try this next:
👉 10 Tiny Money Habits That Save $500+/Year
Small steps. Clear structure. Real progress.