Your first budget in 20 minutes

You'll need

• Your last two pay stubs
• A list of your bills and due dates
• Paper, a notes app or a spreadsheet

Do it like this

1. Gather your bills and pay stubs. That's where the government's consumer.gov budget guide says to start.
2. List every bill (rent, phone, insurance, car payment) with its amount and due date. Then list spending like groceries, gas and eating out. Use last month's bank activity for real numbers instead of guesses.
3. Write down your monthly income from your pay stubs. If your pay changes month to month, add up last year's income and divide by 12 (consumer.gov).
4. Subtract bills and spending from income. The result should be more than zero. If it's less, you're spending more than you make, so look for what you can change.
5. Each day, write down what you spent. At the end of the month, compare it with your plan and adjust next month.

If it doesn't work

• If the numbers don't add up, cut flexible spending first (eating out, subscriptions), then look at the big fixed bills when they come up for renewal.
• If you keep forgetting to track, check your bank app once a week instead of every day. A weekly look beats a perfect plan you quit.
• If bills land before payday, call the company and ask to move the due date. Many will.

Good to know