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Master your money with this insider advice.
Kelly is an editor for CNET Money covering banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
If the word “budgeting” gives you the ick, I get it. I’ve been writing about money for over a decade, and even I get overwhelmed by the sheer volume of budgeting advice out there.
But I’ll let you in on a little secret: A lot of that advice is just noise. You don’t have to spend years deep-diving into budgeting to manage your money better. All you need are these essential tips.
Read more: Do You Hate Your Budget? Try This Instead
My 7 must-know budgeting tipsWhether you’re creating a budget for the first time or have struggled to stick to your budget in the past, these tips can help you manage your money like a pro.
✅ Focus on your CANs, not your CAN’TsBudgeting gets a bad rap. For the longest time, I saw my budget as the buzzkill that prevented me from doing anything enjoyable with my money. Budgeting doesn’t have to be about limits and restrictions. Done right, it can help you afford the things you love most.
I love treating myself to takeout every week. I know making food at home is cheaper, but it’s a splurge I look forward to. My budget helps me free up funds for this habit by showing me where I can cut costs on things I care less about, like clothing and streaming services.
🙇🏻♀️ Find a strategy that isn’t overwhelmingDifferent experts promote different budgeting approaches. In the end, the one that’s best for you is the one that makes the most sense for your situation — and the one you’re most likely to stick with.
Popular budgeting strategies to consider:
50/30/20 method: With this approach, you allocate 50% of your income to needs (like housing and groceries), 30% to wants (like eating out and entertainment) and 20% to savings and/or debt payment.Zero-based budgeting: This strategy forces you to assign every dollar you make to a specific category. If you have anything left over, you can use it for whatever you want.Envelope method: With this method, you set a spending limit for each category in your budget. Once you’ve hit your limit, you can’t spend any more in that category.Play around with several strategies to see which one works best for you. I initially thought zero-based budgeting would help me be more disciplined, but I quickly realized its painstaking, dollar-by-dollar approach made me want to never look at my budget again. So I’ve landed on the envelope method, which helps me control my spending without overwhelming me.
💯 Keep it simpleA budget should challenge you to be smarter with your spending, but it shouldn’t feel like torture. Getting too aggressive, especially at the start, only sets you up for failure. Be honest with yourself about how achievable the goals are that you set for yourself.
For example, If you’re struggling to save, a large goal like saving $500 each month might be too big a reach. Instead, aim for a smaller goal like $50 or $100 per paycheck, and once you get into the habit, grow it from there.
You can always tweak your budget later to challenge yourself more. First, you need to establish a workable baseline so you don’t burn out before you’ve even picked up speed.
📱Let your phone do the heavy liftingI’m old enough that I remember the days of checkbook balancing and Excel spreadsheet budgets. If an old-school approach works best for you, have at it. For most people, the fewer steps they need to take, the more likely they are to keep on top of their budget.
Budgeting apps do the tedious work for you. They can automatically track and sort your income and spending, monitor your progress and identify ways to save. Many are free or low-cost, and there are tons to choose from. I use Rocket Money because I like its user-friendly interface and $6 per month price tag.
Rocket Money/CNET Finally crush your budgeting goals with Rocket Money.
💰 Include your savings goalsA budget isn’t just a way to keep your spending on track. It’s also a way to ensure you’re putting aside enough money to reach your goals. Don’t forget to include a line in your budget for monthly contributions to your emergency fund and any specific savings goals, like your vacation fund or retirement.
🔎 Check in regularlyYour life and financial situation change over time, and your budget should change with them. Re-evaluate your spending categories from time to time to make sure they’re still meeting your needs.
For example, if you consistently go over in a category you’ve already trimmed as much as you can, you could cut costs in another category or find a way to earn some more income. Your budget is never set in stone.
🫶 Give yourself some graceNo one — or at least, no one I’ve ever met — manages to stick to their budget 100% of the time. Life happens, and you’re only human. Instead of throwing in the towel when you have a less-than-stellar month, consider next month a fresh opportunity to do better. Budgeting is a work in progress. Just making the effort is a step in the right direction.
More budgeting tipsBest Budgeting Apps to Master Your 2025 BudgetWant to Manage Your Money Better in 2025 but Hate to Budget? Try This InsteadSpending All of Your Money Can Actually Help You Save More. Here’s Why
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