Roqqett Blog

October 8, 2021
Author: Joelle Phua

Money Insights: Create your own budget plan in 6 steps

Hit a wall with budgeting? Try these steps to create your own personalised budget plan.

Quick Summary

  • Why is a budget important?
  • Tools and best tips for budgets plans
  • 6 steps to create your own budget

Money Insights: Create your own budget plan in 6 steps

Everyone knows that budgeting is good for you, but why? And more importantly, why can it be hard to stick to one?

If this is you, we're going to help you understand why budgets are not as daunting as they seem and build a budget plan that works for you and your lifestyle. No more cookie cutter templates from Pinterest.

Why is a budget important?

2 main things. Financial awareness and planning.

Have you ever gotten to paying the bills and realised that you have less left over than you thought you'd have? Or wanted to buy a present for someone but having to settle for a cheaper alternative?

Budgets help you to stay on top of what you have so that you can plan ahead and have money for what you want.

Numbers can be scary sometimes, especially those big numbers that you see leave your bank account. Instead, budgets break them down into bite-sized categories so you can see exactly what you're spending without feeling overwhelmed.

What type of budget?

When thinking about what type of budget you want to use, here are some questions to ask yourself:

  • What's your goal?
  • Do you identify as a planner?
  • Are you a more spontaneous spender?

Once you've reflected on those answers, consider these top 3 budgeting methods and decide which one suits you best.

1) 50-20-30

50% Needs - 20% savings - 30% wants. This is good for those who don't want or feel the need to manage each individual category. There's a danger in overspending here, so be sure to have an emergency pot or overestimate your budget.

2) Envelope budgeting

This is good for those who want to stop overspending. You withdraw a certain amount of cash for certain activities, like shopping, so that you can't spend any more than that. However, it is always best to keep a card on hand in case of any emergencies.

3) Zero-based budgeting

Best for those who have a similar income every month and want to manage all aspects of their finances. Zero-based basically means that all your income is allocated to go out to a certain place (whether for spending or savings).

Budget methods summary table

Tools to keep track of your budget

Now that we've established budget types, let's start creating your budget! First off, what tools should you use?

There are lots of useful tools to help you keep track of, calculate and create your budget, so we picked our favourites for you.

1) Spreadsheets & Notion

Keeping track of your finances on spreadsheets is probably the first port of call for most people. Tools like Notion have become popular for planning and you can find plenty of budgeting templates from Notion or tips from Notion enthusiasts.

2) Physical planners

You might be a pen and paper type of person so physical planners or notebooks could become your tool of choice. You can opt for planners with pre-printed templates, undated or plain ones to personalise yourself. However, remember that physical planners will be less forgiving if you make mistakes and run out of space.

3) Apps / Web-apps

If you prefer to keep things digitally, there are many budgeting apps and websites you can use. From apps like Roqqett where you can move money easily between accounts to Wallet (app & web-app) where you can group your data with other people, there's a tool out there for all your needs!

How to create your own budget

Here are the 6 steps that you can follow to create a budget that fits your needs and goals:

1) Note your income & expenses

  • It might feel overwhelming to have everything in front of you, but it is essential to start off on the right foot as these are the numbers that the rest of your budget is based on.

2) Note any recurring expenses

  • What bills do you have? E.g. house, utilities, mobile phone
  • Do you have any subscriptions? E.g. entertainment, sports, shopping, news
  • See if there are any that you might want to remove or swap for cheaper options.

3) Average expenses for categories in the past 3+ months

  • Looking at an average number is more likely to be a good estimate as fluctuations on a month-to-month basis may give an inaccurate picture of your spending.
  • Break those down into categories so it feels less daunting.
  • Read this post for the key categories you can use.

4) Set aside money for emergencies and saving goals

  • Whether one of your goals is to save money or not, setting some money aside for unexpected situations and accidental overspending is always a good idea.
  • If you're using the 50-20-30 method, this is when you'd save 20% of your income. It'll also be helpful to have a plan of which savings account the money is going into.

5) Track your budget

  • Use your tracking tool or input your expenses manually. We highly recommend Roqqett, as it is super simple and can give you all the money insights you need.
  • Decide on a time period (weekly or monthly) to review your budget to prevent overspending. Scheduling time to do this will help keep you on track.

6) Adjust as needed

  • It’s tempting to be super strict about budgeting or even fall into the trap of forgetting to adjust your projected budget. 
  • When you’re reviewing (as per step 5), compare your budget against actual spending and after a few weeks or months, average out your actual spending and adjust your budget accordingly.

Remember, budgeting is setting yourself up for the long term so don't worry if you don't get the hang of it straight away!  

Main takeaways:

  • Choose a budgeting method and tools that work for your lifestyle.
  • Don’t be afraid of your money, gaining awareness will empower you to reach your goals.
  • Working backwards when creating your budgets helps to understand where your hard earned money is going.


If you’re looking for a financial app that allows you to see all your accounts in one place and move money easily between accounts, try Roqqett for free!


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