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Creating a Budget: A Step-by-Step Guide

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Budgeting is an essential part of personal finance and can help you save money, plan for the future, and reach your financial goals. Many people struggle when it comes to budgeting, but creating a budget doesn’t have to be difficult. Here is a step-by-step guide created by the Nordic company Sambla on how to create a budget.

Step 1: Calculate Your Income

The first step in creating a budget is to calculate your income. This includes all sources of income, such as wages, salary, bonuses, tips, investment income, and government payments. Make sure to include any additional sources of income that you may have, such as side gigs or rental income.

Step 2: List Your Expenses

The next step is to list out all of your expenses. This includes both fixed expenses (such as rent and insurance payments) and variable expenses (such as groceries and entertainment). Make sure to include one-time expenses such as vacations or holiday gifts. 

Step 3: Track Your Spending

Once you have calculated your income and listed out your expenses, the next step is to track your spending. This can be done manually by writing down all of your purchases or digitally through a budgeting app. Tracking your spending will help you see where your money is going and make it easier to stick to your budget. 

Step 4: Set Financial Goals

Setting financial goals is an important step in creating a budget. These goals can range from short-term goals (such as saving for a vacation) to long-term goals (such as saving for retirement). Once you have set your goals, you can use your budget to help you reach them. 

Step 5: Create Your Budget 

After calculating your income, listing out your expenses, tracking your spending, and setting financial goals, the next step is to create your budget. Start by subtracting your expenses from your income to determine how much money you have left over each month. Then allocate this remaining money towards savings, investments, and other financial goals. This will help ensure that you are staying on track with your budget and reaching your financial goals. 

Step 6: Monitor and Adjust 

Once you have created your budget, the last step is to monitor it and adjust it as needed. Check in with your budget regularly to make sure that you are sticking to it and that it’s working for you. If something isn’t working or you find yourself struggling with certain areas of your budget, don’t be afraid to adjust it accordingly. 


Creating a budget doesn’t have to be difficult or overwhelming. By following these steps, you can create a budget that works for you and helps you achieve your financial goals. With the right budget in place, you can take control of your finances and make sure that you are living within your means.