Maybe you read about budgeting or heard your friends or colleagues talking about it, but you never quite had the chance to put words into action. Or maybe you started but got lost in the process. Whatever is your case, we’ll analyze and split this term so there won’t be any mysteries left in the end.

If you remain with almost nothing at the end of the month and would like to know how to spend your money better, you’ll love to read further and see how easy it is once you understand how it works.

So, What Is Budgeting?

Budgeting is the process of building a plan on how to spend your money. This spending system is called a budget. This process will allow you to clarify in advance if you’ll have money left for the activities and things you need to do.

Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

How does it work?

5 Steps of Understanding Budgeting

1. Be Goal Oriented. 

By starting to organize your salary, you’ll become goal oriented. The secret is to track the main places money go to, and not every spent penny. It might interest you how much you’ve spent on gasoline or food in a day, but if this doesn’t change your behavior, it won’t be much help.

Usually, people overspend in these categories: clothes, gadgets, eating out and entertainment. If you calculate an amount for each of these habits and try to not exceed it, that’s a great step forward.

2. Test Your Budgeting Abilities

Track your spending for a week. Write absolutely every penny you spend on paper and you’ll get a clearer view of what your habits are when overspending. this exercise will help you a lot understanding how and where to make small changes. It will show you how small amounts can add up to big holes in your pocket.

3. Try Using Only Your Card

Many people want to see and feel money in their hands when spending it. However, if you’re going after tracking them, using a card might bring you more advantages. You’ll be able to see everything you spent and start budgeting them better than before.

Use a rewards credit card will add money to your account, but if you don’t want to use a credit card, try a bank debit card or prepaid card instead.

4. Save First

In order to have money left at the end of the month, the easiest way is to put money aside the moment you receive your salary. If you decide that later, the chances are you’ll enter in that amount without even realizing.

5. Use the 50/20/30 Method 

This plan was launched by Senator Elisabeth Warren in her book, All Your Worth, and it simplifies everything. So, 50% of your budget will go to necessities, 30% to lifestyle choices and 20% to long-term savings. This easy to follow plan will help you start putting aside for everything you need.


When we talk about budgeting, we mean saving up. If you can reduce costs or simply find a way of remaining with more money at the end of the month, it means you’re budgeting, the right way.
For example, if you want to do that and simultaneously care for your environment, you can opt for renewal or green energy. For instance, Arcadia is a company that helps you save a lot of money by choosing where your energy is coming from. You can choose any version you from wind energy to solar panels and do good to you and the surroundings.

Now that we understood how the process works, let’s see what free apps can help you track every dime you spend.


Your Free Budgeting Apps: 

Dollar Bird
This app allows you to add past and future expenses in a calendar that calculates what impact will have on your balance. It also has an option of spending by categories. It’s free to use. Available for iOS and Android.


This is an app that helps shows your spending in lists and helps you be more organized. You can track short-term budgets for holidays or work expenses. It’s free, but also has a non-ads version for $1.99. Available for iOS and Android.

Good Budget

Helps you create a budget for every category and spend only that designated amount for each. It is free and the paid version ($45/year) has unlimited categories, 5 years of history and syncs up to 5 devices.


Isn’t life good when you have everything under control? We can make the best of it, especially regarding expenses if we just put a little attention on how we spend. with so many tools and tricks, this will definitely be a fun journey.









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