1. Find your normal income
Use income after tax. If it varies, choose a cautious average or your lowest normal month.
2. Gather fixed expenses
Review transactions and bills for housing, utilities, insurance, transport, phone, debt and subscriptions. Convert quarterly and annual payments into monthly amounts.
3. Set realistic limits
Use the last three months of actual spending on food, transport, leisure and other variable areas. Start close to reality and optimise later.
4. Plan irregular expenses
Dentists, gifts, holidays and repairs are not truly unexpected. Create small monthly reserves or envelopes for them.
5. Review without guilt
Compare your plan with reality once a week. Treat differences as information. A budget is a decision tool, not a report card.