Build a simple monthly budget for the new year: what you spend by category, what to set aside for yearly bills, and how much is left to save.
By TanLabs Editorial Team · Reviewed: page results cross-checked against the free spreadsheet · Last updated · Runs in your browser – nothing you type is sent anywhere
With monthly take-home pay $4,500, rent or mortgage $1,500, utilities, phone & internet $300, groceries $500, transport: car payment, gas, transit $400, insurance & health $250, minimum debt payments $200, subscriptions $60, dining out, fun & shopping $400, yearly irregular costs: gifts, repairs, holidays – per year $2,400:
Left to save: $690.00 a month (15% of take-home)
Spending $3,810.00/mo incl. $200.00 set aside for yearly costs · $8,280.00 a year · needs 70% · wants 10%
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Monthly spending = the eight monthly categories + yearly irregular costs ÷ 12. Left to save = take-home pay − monthly spending. Savings rate = left to save ÷ take-home pay. Needs = housing, utilities, groceries, transport, insurance and minimum debt payments; wants = subscriptions and fun.
Formula source: Zero-based monthly budget: income − spending by category, with irregular yearly costs spread over 12 months, as in CFPB budgeting guidance. CFPB – budgeting: how to create a budget and stick with it
Written and checked by the TanLabs Editorial Team · Last updated
$4,500 take-home, $1,500 housing, $500 groceries, $400 fun, $2,400 of yearly costs:
| Scenario (yearly costs $2,400) | Monthly spending | Left to save | Savings rate | Saved in a year |
|---|---|---|---|---|
| Defaults | $3,810.00 | $690.00 | 15% | $8,280.00 |
| Cut dining & fun to $250 | $3,660.00 | $840.00 | 19% | $10,080.00 |
| Cancel two subscriptions (−$25) | $3,785.00 | $715.00 | 16% | $8,580.00 |
| Groceries −$75 with a meal plan | $3,735.00 | $765.00 | 17% | $9,180.00 |
| All three changes | $3,560.00 | $940.00 | 21% | $11,280.00 |
| Same plan on $5,000 take-home | $3,810.00 | $1,190.00 | 24% | $14,280.00 |
Three easy cuts – less dining out, two fewer subscriptions and a meal plan – add $250 a month, or $3,000 a year, and lift the savings rate from 15% to 21%.
Download the last three months of bank and card statements, average each category, and enter those real numbers. A budget built on guesses usually fails by February.
Costs that do not come every month: car registration, insurance paid yearly, gifts, school costs, vet bills and holidays. Divide the yearly total by 12 and set that aside every month.
The 50/30/20 rule suggests 20% of take-home pay for savings and extra debt payments. Any positive number is a good start; raise it a little each time you get a raise.
Every dollar of income gets a job – spending, saving or debt – so income minus the plan equals zero. This calculator shows the "left to save" line you can assign.
A common guideline is no more than about 30% of gross income. In the 50/30/20 rule, housing sits inside the 50% for needs.
Build a small emergency fund first, then put extra money toward the highest-rate debt, and keep any employer 401(k) match.
Sources: CFPB – budgeting: how to create a budget and stick with it