How to Start a Budget: Simple Steps to Take Control of Your Money
- davidewhitebooks
- Sep 19
- 4 min read
Updated: Nov 23
Building strong money habits starts with a written plan, simple tools, and a weekly review. These are the key steps to starting and staying on budget every month. Updated Nov. 2025. Thanks to everyone who asked for a clearer 65-10-15-10 example. Your feedback helped improve this guide.
Starting a budget does not have to be complicated or overwhelming. By using a simple, balanced approach like the 65-10-15-10 rule, you can take control of your money, reduce stress, and build a secure future while still enjoying life today.
The rule divides your take-home income into:
65 percent for Needs (housing, food, transportation, insurance)
10 percent for Savings (emergency fund, short-term goals)
15 percent for Investing and Growth (retirement, wealth building)
10 percent for Giving or Debt Payoff
This is my 65-10-15-10 Rule, a practical system I designed to help people create a balanced budget that works in real life. It is simple to follow, easy to remember, and flexible enough to adjust as life changes.
Below are clear examples based on common income levels so you can see exactly how the rule works.
Take-home 30,000 dollars per year (2,500 dollars per month)
Needs
30,000 × 65% = 19,500 per year
19,500 ÷ 12 = 1,625 per month
Savings
30,000 × 10% = 3,000 per year
3,000 ÷ 12 = 250 per month
Investing
30,000 × 15% = 4,500 per year
4,500 ÷ 12 = 375 per month
Giving or Debt Payoff
30,000 × 10% = 3,000 per year
3,000 ÷ 12 = 250 per month
Take-home 60,000 dollars per year (5,000 dollars per month)
Needs
60,000 × 65% = 39,000 per year
39,000 ÷ 12 = 3,250 per month
Savings
60,000 × 10% = 6,000 per year
6,000 ÷ 12 = 500 per month
Investing
60,000 × 15% = 9,000 per year
9,000 ÷ 12 = 750 per month
Giving or Debt Payoff
60,000 × 10% = 6,000 per year
6,000 ÷ 12 = 500 per month
Take-home 100,000 dollars per year (8,333 dollars per month)
Needs
100,000 × 65% = 65,000 per year
65,000 ÷ 12 = 5,417 per month
Savings
100,000 × 10% = 10,000 per year
10,000 ÷ 12 = 833 per month
Investing
100,000 × 15% = 15,000 per year
15,000 ÷ 12 = 1,250 per month
Giving or Debt Payoff
100,000 × 10% = 10,000 per year
10,000 ÷ 12 = 833 per month
With this clear plan in place, you can now follow practical steps to build your budget. Use the percentages as your guide, and the steps below as the actions that bring the plan to life.
Know Your Income
Start with your net income, the amount you take home after taxes. This is the real number you can budget with each month.
Track Your Expenses
For one month, write down everything you spend. Include rent, utilities, debt payments, groceries, coffee, and shopping. Separate your fixed expenses from your variable expenses. This gives you a clear picture of where your money actually goes.
Set Financial Goals
Your budget should support your goals. Are you trying to build savings, pay off debt, save for travel, or invest for retirement? Clear goals make it easier to adjust your spending.
Create and Stick to a Plan
Use the 65-10-15-10 rule as your baseline. It balances your needs, savings, investing, and lifestyle spending so you can enjoy life now while preparing for the future.
Review and Adjust
Review your budget monthly. Make adjustments as life changes. Budgeting is not about perfection. It is about awareness and small improvements over time.
Budgeting is about clarity and intention. These steps help you move from wondering where your money went to deciding where your money goes. That is the real power of budgeting.
Taking the Next Step
If you are ready to build a stronger financial foundation, here are resources that can help.
Books by David E. White
Available in Kindle and Paperback formats
HOW TO BUDGET AND SAVE
UNLOCK FINANCIAL FREEDOM: SIMPLE BUDGETING STRATEGIES FOR EVERY INCOME LEVEL
Kindle: https://amzn.to/496Y96M
Paperback: https://amzn.to/4epX4aU
RETIREMENT PLANNING HANDBOOK
Your Guide to Financial Freedom, Health, and Happiness in the Golden Years
Kindle: https://amzn.to/47yDO9m
Paperback: https://amzn.to/4lptFQp
PERSONAL FINANCE FOR TEENS AND PARENTS
How to Budget, Save, and Invest as a Family for a Lifetime of Financial Success
Kindle: https://amzn.to/49bmFnh
Paperback: https://amzn.to/4otKmMk
Recommended Tool: Clever Fox Budget Planner
Check it out on Amazon: https://amzn.to/3V5GO5V
Disclaimer
This blog is for informational and educational purposes only. It is not financial, investment, tax, or legal advice. Consult a licensed professional for advice tailored to your situation.
Some links in this post are affiliate links. If you click and purchase, I may earn a small commission at no extra cost to you. I appreciate your support.
Question for You
What is the first financial goal you want to save for after starting your budget?
David E. White
Veteran | Author | Blogger | Financial Educator
Over 20 Years of Business Ownership Experience
NEW Vision, LLC
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