How to Make a Budget in 7 Easy Steps

How to Make a Budget

Learning how to make a budget makes you more conscious of your money.

Continually striving to reach your goals drastically increases your chances of getting there, even if you stumble sometimes. Re-evaluate whenever necessary, but don’t give up. You can do this!

This guide is going to walk you through, step by step, how to make a budget that you can stick to it.

You’ve got money goals. Whether you want to get out of debt, save for retirement, or afford that luxury vacation in Europe, there is one thing you know you have to do:

Get control of your spending.

Creating a budget doesn’t have to be scary or overly restrictive. A reasonable budget is flexible! It knows that your life is ever-changing and helps you prepare for that reality. The only requirement of a reasonable budget is that it helps you get conscious of your spending — and live within your means.

Here’s how to make a budget that works for you so that you can stress a little bit less about money.


1 How to Make a Budget Plan

2 Decide How You’ll Track Things

3 Figure Out Your Take-Home Pay Income

4 See Where You Are Currently Spending

5 Set Your Priorities

6 Track Your Progress

7 Re-Evaluate and Make Adjustments

Budgeting Method

Step 1: How to Make a Budget Plan

50/30/20 Budgeting Method

The most straightforward budget rule, the 50/30/20 method, is indifferent to your exact spending on electricity versus your cell phone bill this month. All that matters is your spending stays within three main categories: Needs: 50%, Wants: 30%, Savings: 20%.

The benefit of the 50/30/20 rule is that no one category is expected to be static. The composition of spending can be different every month. But as long as your expense fits into the limits set by the broad categories, you’ll continue moving towards your goals.

This method is the preferred method of budgeting. It is simple yet powerful. You are always saving for the future, but you don’t get bogged down in the details.

Step 2: Decide How You’ll Track Things

We are creating a budget once it won’t change your financial life. To have an impact, you need to continue budgeting consistently. Which means we need a way to track your budget.

Especially for beginners, writing out expenses has the benefit of making you carefully consider where you stand, in a way that more automated budget systems don’t.

Use a Budget App to help you track your new budget.

Let’s get to work.

Step 3: Figure Out Your Take-Home Pay Income

You can’t determine your budget until you know how much you have to spend.

To figure out how much you have available to spend each month, you need to determine your take-home pay income. This is the amount that comes in on your paychecks and that you have available to spend.

Add up all your sources of income in a given month, including your job and passive income. This income source is your base, excluding the profit from trading.

Step 4: See Where You Are Currently Spending

Hold on tight. It’s about to get real.

Before you can finish your budget, you have to reflect on where your money is going. And if you’re starting a budget because you know you’ve been overspending, this can be tough. Just remember not to beat yourself up for past spending. You’re making positive steps to be more financially responsible. That’s all that matters!

Review your last two to four months of expenses and break them down into spending categories. Look at bank and credit card statements to help you get a sense of where you are at. In places where you use cash, try to make the best guess at your spending. Also, make a note of any minimum payments on debt, as that also has a white-knuckled claim on your money.

Have your list of categories, along with what you are spending on average, on hand. Now you can build your 50/30/20 buckets.

Allocate 50% of Your Income to Needs

Your most significant and crucial budget category is needs. But what are your needs?

Your Needs are comprised of living expenses and essentials. Items like your rent or mortgage, utilities, home and insurance. These are expenses that you can’t forgo without a significant inconvenience. (Your subscription services and yoga classes don’t count.)

You’ll also want to include any minimum payments on debt. These are the required expenses and should be treated as “needs” instead of debt repayment.

Make a list of all the items in your needs list with their associated expenses. If the total is more than 50% of your income calculated in Step 3, find places to cut. If you can’t get to 50%, the overage will have to dip into your 30% “wants” budget for a while.

Allocate 20% of Your Income to Debt Repayment and Savings

After needs, the 50/30/20 budgeting method prioritizes savings. You need to save for your future every single month.

Calculate 20% of your monthly take-home pay income from Step 3. If you aren’t a math whiz, open up your phone and multiply your income by 0.2. This is the amount you need to contribute to saving money in your emergency fund or retirement accounts.

However, if you still have debt, you can also include extra principal payments in this 20%. Getting out of debt is an investment in your future.

Allocate 30% of Your Income to Wants

What is left over after your spending on “Needs” and “Saving” is the maximum you can spend on wants. This is your quality of life spending, like your cell phone’s data plan, date night, Chinese take-out, and new clothes.

You’ll want to reflect on the spending categories you compiled earlier from your last few months of spending. What items are left after removing the needs? Does the sum fit in the remaining 30% of your budget? And if not, where can you cut?

Remember that you also need to set aside cash for longer-term wants, like your annual family vacation.

More than any other, this step can be tricky. You’ll have to make choices. Unfortunately, we can’t do everything we want. But if we understand our priorities, we can do anything we choose. Reflect on which of your “wants” is most important to you, then skip the things that don’t bring you joy.

Note: For “Needs” and “Wants,” 50% and 30% are the maxima you can spend. Spending less, in support of more fabulous savings or debt repayment, will help you reach your financial goals faster.

Step 5: Set Your Priorities

What do you want to achieve with your money?

While your ultimate goal might be saving for a big vacation or new house, you first need to build a solid financial base. By getting the necessary foundation right, your security won’t be thrown off by one unexpected expense. Setting your priorities is key to ending financial stress.

These are a few key money priorities you want your budget to tackle:

Build an Emergency Fund

If you’re still living paycheck-to-paycheck, your first goal is setting up a $1,000 emergency fund. Because we all know life loves sneaking up on us. We recommend saving your emergency fund in a high-interest savings account that provides safety plus guaranteed returns. This will ensure that you don’t spend that money while allowing it to continue to work for you while it waits on the sidelines.

Once you’ve tackled your $1,000 starter emergency fund, you’ll want to continue to add to it. Depending on your job, a three- to a six-month emergency fund is ideal. This will protect you from more considerable financial surprises, like a job layoff or health issue.

Step 6: Track Your Progress

It’s official: you’re all set up! But you’re far from done.

Budgeting is a long-term game. You need to check in on your spending regularly to ensure that your needs and wants aren’t creeping beyond their 50% and 30% income designations. Plus, you’ll need to add new budget categories and delete others over time.

We recommend reviewing your budget every week in the beginning.

Checking in every week will allow you to make course corrections before things get too far off track.

Eventually, you’ll get a feel for your spending habits and will be able to extend the time between meetings. However, try to review your budget at least once a month. Even the most practiced and thoughtful spenders see money slip through the cracks when they lose focus!

Step 7: Re-Evaluate and Make Adjustments

One of the biggest mistakes new budgeters make is not sticking with the budget long enough. They get frustrated when they overspend in a category, or an emergency expense sets them back on their goals. Not understanding that there is no such thing as a typical month or a static budget, they conclude that they are “just bad at budgeting,”… and then they give up.

These are the moments to power through!

The first budget you make won’t be your last. You are new to tracking your expenses, so you are going to get things wrong. The important thing is to continue monitoring, review where your weak points are, and adjust your habits and budget accordingly.

Stock Trading: Where the Journey Begins

Stock Trading Education Featured

Where to Start Trading Stocks
Stock Trading can be a very complex and challenging career choice. A new trader needs to start on the right foot. Without proper guidance and education, it is straightforward to get in a hole quick. The better the education you receive right from the get-go, the faster you will see results. The goal of a Stock Trader is to make money consistently, with their gains larger than their drawdowns. Let’s talk about where to start your Stock Trading journey.

First Things First
The first thing everyone needs to begin with Stock Trading is capital. It is very easy to see other people’s success and think it is easier than it is. When you are funding your trading account or simply just trying to save money, you should never use your life savings. The risk is always there to lose money. If you are funding your trading account, you need to invest with money you aren’t going to rely on to live. It takes time to make money when you are starting.

Brokerage Account
The next step is to find a broker that is right for your Stock Trading Style. Individual brokers are better than others, depending on how you want to trade. There are different brokers that you can get away with certain things that you aren’t with others. For instance, a Day Trade is entering and exiting a stock position on the same day.

Day Trading
For the most part, all brokers are adapted their platforms to be Day Traders friendly. Day Trading popularity has grown so much that most brokers such as TD Ameritrade, E*Trade, etc. have adapted to Day Trading styles.

Short Selling
Some Brokers can be better than others when it comes to short selling stocks. Short selling is a reverse chronological order of going long. Instead of buying low and selling high you are selling high, taking a contrary position, then buying back at a lower price. One of the brokers good for this in Interactive Brokers.

Along with Day Trading, most brokers have adapted to the growing popularity of Options Trading as well. Options, in a nutshell, are contracts that you can buy on a stock to have the ability to purchase the stock at a later date at a specific price. The reason for the growing popularity of trading options is the ability to make more with a smaller amount of upfront capital. TD Ameritrade, E*Trade, Charles Schwab, Fidelity, etc. are all decent brokers for trading options

The contract for difference, or CFD, trading is an agreement between the trader and the broker. In this contract, both parties agree to exchange a financial asset during the time frame between when the trade is opened and closed. This type of agreement doesn’t require that the trader actually purchase the asset—it merely allows them to profit or incur losses based on that asset’s movement. The leading CFD trading brokers in Singapore are IG Markets, Phillip CFD (PhillipCapital), CMC Markets, Oanda, Saxo Markets, and CityIndex.

For example, if an asset is in a strong uptrend, a trader may wish to buy 50 shares of that asset at $20 a share. Rather than paying the full amount to purchase the asset in question (in this case, $1,000), a CFD agreement allows them to pay just 5 percent of the asset’s value to open the contract. In this example, 5 percent of $20 is $1, so the trader would pay a total of $50 for 50 shares.

Stock Trading Education
I believe the most important thing new traders can do is invest in their education before investing in the market. I have seen time and time again when new traders come in thinking they know what is happening and what to do to see their account slowly draw down to zero. Or even worse, see their account go negative.

Where to Start Trading Stocks
Stock Trading can be a long process to gain consistency and growth. But with the proper tools and education, anyone can make their journey faster and easier.

One Year Already


I decided to reveal and share my trading journey with the public. It has been for one year since I set up and publish this website in October 2018. To blog every single track record on the website. Always transparent. Things have gone well when I occasionally share my opening positions with people interested in making profit together in the stock market. That’s the definition of Stock Trading Interest to me.

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I love to share the joy with someone who has the interest and passion for the same thing as me, especially I have owned a high-income skill-set and a vast experience in sustaining profitable trading in the stock market. I decided to create a Stock Trading Interest community to share my trading experience with members to see my entry and exitAlways transparent. It’s an incredible experience found in my community that the members always not only get better entry and more significant profit than me but get to know my secret recipes and insignificant loss occasionally. Joy is meant to be shared. I love it.

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There is a huge difference in trading with your own space and trading with the public. It’s all about the borderline by adjusting my emotion to the point that I get across myself back to track. I am a day trader who has no patience and seldom use charting tool for trading but often profits from getting in, getting out and get paid in a few minutes. Very often, I lazy to trade in the stock market regardless I know well how the stock reacts for the day.

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Joy is experienced to be shared. So I decided to provide a sharing session to the amateur traders by sharing my proven trading skills that are sufficient for them become Mini Trader to trade the market and learning to fish on their own to find trades. At the same time, I also created a Mini Trader Community to share my trade ideas with them how the stocks react before the opening bells. Mini Traders owned the skill-set that I shared, and my other members in this community are guided on how to play and what to watch out for. We have been consistently profitable in the stock market from day 1 since I created this community group, and Mini Traders are not only getting profit but get to evolve themselves to the next level. The public sent me the email to ask the charges to attend and join me. I replied them one word, “Free” or “No-charge”. The jovial is tremendous. Sharing is caring.

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I always get such a question, “do you practice cut loss?”. I don’t. I never do cut loss for a long time. I know well how the stock move before the move. It moves up or moves down first. It stops at which level, and turning point at which price level. I already know before the opening. Cut loss to me is not necessary unless I want it. The skills that I shared with Mini Traders understand, happy, and eye-open for the cut loss is luxury if it comes. However, cut loss is a need for many other professional traders. We have no such thing IF, OR, BUT, and PREDICT the market. We are another different level.

In the past 1 year, the trading journey together with the people is incredible for me. I have enough sharing and trading in the stock market. I don’t enjoy to make always-green from the stock markets because I don’t see any challenge. I wish Mini Traders quickly get evolve to the next level soon to have your style by exercising every day. Always remember I preach every time the stock is like your girlfriend/boyfriend. I also address the art of scaling every moment no one can nail the top, no one can nail the bottom, but you have to start somewhere.

Xmas Pretty Woman

Spend more time with love ones, make money every day, and love your life. Be humble and celebrate life every day. For me, I want to make some difference. Trade with Care. Huat ah!

Pro’s Pro

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XLNX Chart
URI Chart
DBS Chart

I managed to learn from other professionals, whereby……

What a great waste!?! And what a show-off the after-the-fact. 

I make it very clear these, Nasdaq: XLNX and NYSE: URI, on Sunday (22 September) when I shared “secret recipes” with newly-joined Mini Traders, were nothing more than a buying opportunity.

Said from the moment yesterday (23 September) when I shared with my community, I told everyone goes ahead at the specific time. Singapore market will rebound today (24 September). 

What a beauty to ring the opening bell before the move! All these predictions come true. We nailed it perfectly — no effort trade at all.

I am showing off the after-effect. Easier said than done.

I wish Mini Traders don’t learn from me. Learn better from other professionals. They are professionals in trading, coaching, and making calls for you to learn. Mini Traders who attend my sharing session is another different level. Fish your own ideas and help others get better trading outcomes.

True Leader Don’t Create Followers

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The idea I shared with my community, it’s tons of the stock picks for them to take their pick. I cannot be more accurate and clear on the movement and react before opening bells. From swing idea at the beginning to short-term trade, day trade, fast scalp, news idea, analyst idea, watch idea, practice idea, and many more.

Once you step into my community from day 1, everything change for you. You see things and understand trades and set-ups more than you could ever imagine.

It’s so~~ fun to see how the market does by my community, and know-how to trade by Mini Traders. Predict, anticipate, and after-the-fact is only for professional use to followers and the public. We are on a different level. We just know, and know only. No GUESS. No AND IF OR BUT.

You Are Exactly Where You Need To Be

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Nasdaq Chart

What I did something different last week. I shut off myself to watch other professional traders give the call for their followers. Like this “I’ll be watching…..”, “go within trendlines have to choose a direction if break above, then… if break below, then….”, “watching this out very very closely…”, “I hope it touches this 200MA soon, I watch this closely…”, “That’s the potential support level, I’ll be watching closely…”, “I see if it can touch Fibonacci %%…, then I watch closely”, “do note the market is extremely volatile”, “Those who swing, can consider taking but do take note…”, “Seems it’s likely….”.

Oh my god! I turn off. So you do?

Anyway last week, It’s not only close one eye but more towards relaxing to trade the market and taking good food and other good food, which I haven’t had it for a month. It’s been a great week because of the Mid-Autumn Festival. Relax, and Tuan Yuan (reunion) with love ones.

In the past two weeks, I wrapped up incredible trading and sharing. More and more, I am sharing things that my community and Mini Traders have never seen before. I am trying to share ALL type how to trade in today’s market. Impossible for me to share EVERYTHING, but it’s essential to meet the objective. That is to fish on their own to find trades. I believe every Mini Traders can make the judgment and fish their wealth because they already have the skills and continuously evolve to be their own style.

Together with my community as their trading tool, the sharing is fantastic. Mini Traders never loses. They either win or learn!

Accurately Predict The Markets Consistently


After taking a long break, I started to watch the market and things surrounding me. Sincerely, it’s insulting and laughable in my community to predict the market accurately and consistently. We never make a prediction, forecast, prognostication, or whatever think will happen. We already know the markets move before it moves. Are knowing and predicting different?

Though there was no blog more than a week, I continued to share my idea in my community. At the beginning of this month, I shared an idea, OCBC, and the market view to my community. This first idea of the month was spotted while conducting a sharing session.

Next, I began to make some list of a few hand-picked stock ideas for my community that all can eye for potential opportunities. These lists are also specially designed to assist developing Mini Traders in identifying low risk and action-ready for the setups. If the highlighted setups happen not to trigger the entry during the evening’s session, they could place a price alert. So that when the opportunity does present itself, Mini Traders and the community members will be fully aware of it and ready to execute.

By doing this hand-picked idea, it fits many traders, but not for me. I hardly use the chart to trade the stock market for entry and exit. I already know how the stock reacts before the opening bells. But, I make an effort to find opportunities for my community by looking at the chart, then share the selection for all before opening bells. Leverage my community as a trading tool. Sharing is caring.

I enjoy my rest day, but nowadays I don’t enjoy to make always-green from the stock markets because I don’t see any challenge. I want to make some difference. Thinking…

Pulling The Trigger To Trade But Profit

Target Inc

There are 86400 seconds in a day. There is no shortage of any$$ in this stock market. Indeed, I want to take a good break, but phone beep from trading mobile platform. The advanced order, Target Inc, was filled that I set 5 days ago. This trade was the 4th time I had done. Trigger me to make another trade though. Getting in, getting out, and get paid within 30 minutes.

Hopefully, before I go for a break, the swing ideas I shared with my community allows them to build their positions and get paid too. Of course, I get also paid to swing DJI Futures merely 1 unit.

It’s quite quiet rare, but hopefully, there are more and more Mini Traders able to offload me to see the same trade I see.

Buying Scared Money

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TTD Chart

……………………………………… 😒😒😒😒😒

As usual. Indeed, it’s nothing much to say about these trades. I just like buying scared money. It works well the script I shared with my community before opening bells start. Prepare to plan, and plan to prepare.

Bottom line, more savvy traders, like us, can take advantage of the sharp volatility, while the rest have to respect it by waiting out the storm (so they gonna say Perhaps… Possible… Potential…go here to confirm then what and what. Sick! 😒)

Enough to trade this month. No over-trade. We take a break since US markets closed on Monday, Sept 2.

Mini Sharing Opportunities

Earnings Release Date

What is this? Isn’t it full of opportunities in the stock markets? People had done the homework for you. Steady slow! Nice Gem! Easy Trade! Cherry-pick your seat only.

Pick the seat that the team has many votes or the stock name with the highest recommendation by groups, or any other picky way different from others. All these stock picks, each has a style that will surely satisfy most traders’ appetites. Except me, I like getting in, getting out and get paid.

Understand your trading style. Know your appetite. Trade with care. No greed. This Mini sharing able to connect traders for better trading outcomes.