Back to the Basics: How to Start Budgeting Without Overcomplicating It

Sometimes we need to go back to the beginning.

There are so many budgeting methods, planners, cash envelopes, savings challenges and different ways to manage our money that it can start to feel overwhelming—especially if you're just getting started.

For this Financial Friday Live, I wanted to bring it back to the basics.

You don't need to do everything at once. You don't need the perfect budgeting system. And you definitely don't need to compare your budget to someone else's.

You just need to start.

Step 1: Know Where Your Money Is Going

Before you can create a realistic budget, you need to understand what you're actually spending.

This is where I always recommend looking at your recent bank statement and really paying attention to your transactions.

Not what you think you're spending.

What you're actually spending.

Look at your groceries, eating out, subscriptions, shopping, gas, bills and all of those little purchases that don't seem like much at the time.

Those small purchases can add up quickly.

This isn't about judging yourself. It's about becoming aware.

Once you know where your money has been going, you can start deciding where you want it to go instead.

Step 2: Start With a Simple Budget

Your first budget doesn't need to be complicated.

Start with your income and your regular monthly expenses.

Then look at the categories that change from week to week, such as groceries, gas, eating out, personal spending and household expenses.

Give yourself realistic amounts for those categories.

One of the biggest mistakes we can make when starting a budget is creating numbers that look wonderful on paper but don't actually work in real life.

If you normally spend $600 on groceries, suddenly giving yourself $200 probably isn't going to work.

Start realistically and make adjustments as you learn.

Step 3: Choose the Categories You Need Help With

This is where the cash envelope system can be extremely helpful.

You don't have to take every dollar out of your bank account and use cash for everything.

Choose a few categories where you know you tend to overspend.

Maybe it's:

• Groceries
• Eating out
• Personal spending
• Household
• Fun money

Put the amount you've budgeted into the appropriate envelope.

Now you can physically see what you have available to spend.

For someone who is new to cash budgeting, I especially like starting with pre-labeled categories because you're not trying to figure out an entire system from scratch.

Keep it simple.

Step 4: Use a Planner to Keep Everything Together

This is one of the reasons I love budget planners.

Your planner gives you one place to keep track of your budget, bills, spending, goals and weekly planning.

You don't need five different systems.

You need something you will actually open and use.

And remember: buying a planner doesn't create the budget for you. 😂

You have to use it.

Write in it. Make mistakes in it. Cross things out. Change your numbers. Check in throughout the month.

Your planner is supposed to be a working tool, not something that has to stay perfect.

Step 5: Check In With Your Budget

Creating a budget at the beginning of the month and never looking at it again isn't enough.

Check in with your money throughout the month.

Ask yourself:

Am I staying within my categories?
Is there a bill coming up that I need to prepare for?
Did I overspend somewhere?
Do I need to adjust anything?

If something didn't work, change it.

A budget isn't set in stone.

It's supposed to work with your real life.

You Don't Need Everything to Get Started

I sell budgeting products. Of course I love planners, binders, cash envelopes, stickers and all of the fun accessories. 🤎

But I will always tell you this:

You do not need everything at once.

If you're brand-new to budgeting, start with the basics.

Start with your budget planner. Learn your numbers. Build the habit of checking in with your money.

Then, if cash envelopes would help you, add them.

If you want to start saving for specific goals, add savings challenges or sinking funds.

Build your system as you need it.

Don't overwhelm yourself before you've even started.

Give Yourself Time

Budgeting is a habit.

You're probably not going to create your first budget and suddenly do everything perfectly.

You might overspend.

You might forget to write something down.

You might realize halfway through the month that one of your categories wasn't realistic.

That's okay.

Adjust and keep going.

The goal isn't to have a perfect-looking budget.

The goal is to become more intentional with your money.

And sometimes the best thing you can do is simply go back to the basics.

Watch the Back to the Basics Financial Friday Live

If you're new to budgeting—or you just feel like your current system has gotten a little overwhelming—watch the full Back to the Basics Financial Friday Live below.

[SEPTEMBER 18 LIVE VIDEO HERE]

Grab your budget planner, your cash envelopes or even a simple notebook and follow along with me.

You don't have to change everything today.

Pick one thing and start there.

I'll see you next Financial Friday! 🤎

— Christina
Christina Loves Planning