{"id":200,"date":"2022-03-04T23:37:00","date_gmt":"2022-03-04T23:37:00","guid":{"rendered":"http:\/\/spruce-dev.chemistry.digital\/?p=200"},"modified":"2025-03-29T04:25:45","modified_gmt":"2025-03-29T04:25:45","slug":"how-to-create-a-budget","status":"publish","type":"post","link":"https:\/\/www.sprucemoney.com\/resource-center\/planning\/how-to-create-a-budget\/","title":{"rendered":"How to create a budget"},"content":{"rendered":"\n

You\u2019ve heard it before\u2014a budget is a crucial step on the path to financial stability. But what does that really mean and where do you begin? If you\u2019re stumped on how to create a budget, fear not\u2014we’re here to help.\u00a0\u00a0<\/p>\n\n\n

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While learning how to create a budget is important, not everyone knows how to do it. Read on as we help outline the steps to take to create a personal budget.  <\/p>\n\n\n\n

How to create monthly budgets\u2014and why they’re important\u00a0<\/h2>\n\n\n\n

Before we get into how to create a monthly budget, we\u2019ll outline why it\u2019s important for your financial and personal wellness. The main reason to create a personal budget should be to gain control of your saving<\/a> and identify your spending habits. A realistic budget will help you create an emergency fund, pay off debt, and prevent overspending. <\/p>\n\n\n\n

Sticking to a budget has major benefits. You’ll be able to deal with unexpected expenses without having to assume credit card debt, or without having to take on (more) debt. You\u2019ll be able to save for long-term and short-term savings goals. Most importantly, having a budget and having control over your financial situation will bring you peace of mind and reduce stress. <\/p>\n\n\n\n

Speaking of sticking to your plan… See how Spruce mobile banking features <\/a>can help you along the way!\u00a0<\/strong> With Spruce you can choose to earmark money for saving goals that you create and track your spending with the Watchlist<\/a>.<\/p>\n\n\n\n

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A mobile banking app you\u2019ll love, from a name you can trust. Check out Spruce, built by H&R Block.<\/h3>
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Get started<\/a><\/div>\n<\/div><\/div><\/div>\n\n\n\n

Spruce fintech platform is built by H&R Block, which is not a bank. Bank products by Pathward\u00ae, N.A., Member FDIC.<\/p>\n\n\n\n

How to create a budget plan\u202f <\/h2>\n\n\n\n

Now that you know the importance of having a budget, let\u2019s get into how to create a budget plan. Although it sounds daunting, there are some simple steps that will get you there. <\/p>\n\n\n\n

1. Calculate your monthly income and expenses\u202f\u202f <\/h3>\n\n\n\n

First, calculate your total income and expenses. Gather your financial information for the past several months, such as bank account statements, paystubs, investment accounts, credit card bills, important receipts, mortgage or rent statements, car payments, and other bills (including those for fixed expenses or variable expenses).\u202fWe\u2019ll break them out further below: <\/p>\n\n\n\n