STEP 3. TRACK YOUR PROGRESS
Write down what you spend, or use a budget app or NerdWallet’s budget template to help.
Pay attention to where your money is going. If you notice areas where you’re overspending, try to cut those costs. If you’re able to make cuts and have money left over, put it toward debt repayment, savings or another financial priority.
STEP 4. AUTOMATE YOUR SAVINGS
Set up automatic savings to make things easier. You can set automatic deposits to an emergency fund, investment or retirement account on your paydays. If your income changes from month to month, set reminders to move money when you can. You don’t have to do it alone — a friend or online group can keep you motivated to stick to your budget.
STEP 5. PRACTICE BUDGET MANAGEMENT
Your money situation will change over time. Check your budget every few months and adjust if needed.
If you find that the initial budgeting system you chose isn’t working for you, consider trying a different strategy. The budget you choose doesn’t have to last forever.
DETERMINE YOUR BUDGETING PRIORITIES When budgeting, it can be hard to figure out which items are most urgent. Should you prioritize your credit card debt, student loan repayments or retirement savings? Here is a list of potential priorities from most to least urgent. PRIORITY NO. 1: START AN EMERGENCY FUND Many experts recommend trying to build up several months of bare-bones living expenses. NerdWallet suggests starting an emergency fund of at least $500, which could be enough to cover small emergencies and repairs. If that starting amount isn’t possible, put at least a little bit toward the fund every paycheck. According to a recent NerdWallet survey, 46% of Americans plan on saving money for emergencies in 2026.
PRIORITY NO. 2: GET YOUR 401(K) MATCH
If your job offers a 401(k) match, consider putting in enough to get the full match. That’s free money.
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