Budget and track spending
Financial goals/Manage spending and save
Edited by: Amy Kalin, Senior Editor, Credit & Debt
Get a step-by-step plan for creating a budget, tips for sticking with it, and tools to track your spending.
Image: budget-and-track-spendingEditorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
How to create a budget
Creating a budget is the best way to get on top of your finances and make progress toward your money goals.
Follow these steps to get started:
Image: Make a list of…
Your income
This is your take-home pay — the amount after taxes that you have for spending and saving.
Essential expenses
Everything from rent to all monthly bills including credit card and loan payments, plus groceries, transportation and medical care.
Savings
Think of this as paying yourself for future wants, needs and emergencies. Estimate a realistic monthly amount based on your income and essential expenses.
Non-essentials
Examples: Memberships, subscriptions, meals out, fun with friends and optional personal care.
Image: Circle + IconHowCSworks_labels-1Do the math
Use our budget calculator to get an estimated reality check of your income versus expenses.
Image: Circle + IconHowCSworks_labelsMake adjustments
Revisit your list and consider any tweaks you could make.
If you need more breathing room…
Look for non-essentials to cut back on
- Food delivery
- Subscriptions you can live without
- Other lifestyle optionals
If needed, consider bigger lifestyle changes or debt relief options:
- Getting roommates or temporarily moving home to build savings
- Financial guidance from the nonprofit National Foundation for Credit Counseling
If you have some extra room:
- Start or add to your savings or emergency fund
- Put extra toward high-interest debt
- Treat yourself with some of your windfall and save the rest
Budget tip: Be realistic
Most people need to trade off some “wants” to take care of their needs. But getting too strict with yourself can backfire — so find ways to reward yourself, too. It’ll help keep you motivated.
Choose your budget strategy
There’s no one-size-fits-all for budgeting.
Think about these budgeting methods, try what might work for you, and adjust if needed.
The 50/30/20 Budget Rule
50% Necessities
Groceries, Rent, Transportation, Utilities, Debts
30% Wants
Takeout, Subscriptions, Travel, Entertainment
20% Savings
Savings accounts, Investments, Retirement
The envelope method (also known as cash-stuffing). This system involves putting cash into envelopes tied to different spending categories. When the money in an envelope runs out, you’re done spending in that category.
Pay yourself first. With this approach, you put a set amount into your savings first, before spending any money (You can automate this by having a portion of your paycheck sent to your savings account via direct deposit).
Zero-based budgeting. In this system, every dollar in your paycheck is accounted for and placed within a budget category so you know exactly where your money is going.
Get ahead of your impulses
Even with a solid budget, it can be tough to avoid emotional spending. A couple things that can help:
- Tune into your mindset — awareness is half the battle.
- Try the 24-hour rule — wait a day before acting on temptation. This can break the cycle of instant gratification and save your budget.
In 2025, Gen Z’s biggest financial regrets were not saving money and impulse buying.
- 38% said they wished they’d set money aside.
- 30% regretted impulse buying triggered by stress, depression or happiness.
Now…
- 47% are committed to making a budget and sticking to it.
- 38% plan to use healthier coping strategies than spending (exercise, cooking, meditating, etc.).
Based on a survey conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma from December 3-11, 2025, among 1,005 U.S. adults ages 18 and older.
Image: Group 21472307706 simple budgeting tips to stay on track
1. Adjust your budget before the month begins. It’s a lot easier to make budget trade-offs or adjustments before you start spending. Things like holidays or travel plans can leave you in the red if you don’t plan ahead.
2. Get serious about needs versus wants. Food delivery multiple times a week might feel like a need (you have to eat, right?). But think about how cutting back on some non-essentials could help ease your money stress now — and pave the way for more fun later.
3. Organize bills and receipts. In addition to helping you track spending, organizing bills and receipts can help you spot any incorrect charges.
4. Allow yourself to have fun. If you’re not putting at least some money toward things you enjoy, you might resent budgeting and stop entirely.
5. Create a contingency category. If your budget has any room to spare, consider creating a category for unexpected costs or future budget adjustments.
6. Set specific, realistic savings goals. Even if saving doesn’t feel possible right now, try setting aside just small amounts (even $5 increments) into an emergency fund until you have a little more to spare. It adds up, and it feels good.
3 ways to track your spending
It’s tough to create a realistic budget if you don’t know where your money is going.
Here are a few ways to keep tabs on your spending.
Image: Circle + Icon@2x-1Check your account statements
Seeing a long list of everything you buy in a month can be a big reality check on where you could cut back.
Image: docTry a spreadsheet
Budgeting and tracking expenses the old fashioned way can help keep your financial situation clear and top of mind.
Image: Icon 1Use an app
A budgeting app can put activity from multiple accounts into one place, making it easy to stay organized and adjust. You can also set up alerts and other features to help with cash flow and identify waste.
Got questions? We have answers.
How much you should save from each paycheck depends on your lifestyle and goals. A common guideline is to cover necessities first, leave room for some “wants,” and dedicate a portion for savings and retirement. If money feels tight, start with what you can and automate deposits on payday.
The 50/30/20 rule is a simple budgeting approach that splits your take-home income into 50% for necessary expenses, 30% for other expenses, and 20% for savings and paying down debt. You can change the percentages to fit your situation, especially if your expenses are low or your needs exceed 50% of your expenses.
Create a simple budget spreadsheet with four columns: Item, Planned, Actual, and Notes. Start by listing all monthly income sources at the top and totaling them. Then add key expense categories like housing, utilities, groceries, transportation, insurance, debt, savings, and fun spending. Each month, compare planned versus actual amounts and use Notes to track patterns and adjust.
Zero-based budgeting means giving every dollar you earn a specific job so that your income minus expenses equals zero. With this method, you estimate each category of expenses and allocate your income accordingly until you hit zero. This method could be ideal if you want better awareness of where your money goes.