I do not know what my budget is or how much exactly I pay or recieve every month

Hi. New here! I need to start budgetting but dk how… im a complete beginner with this. I do not know how much i spend or recieve… i know a rough estimate but is that good enough for proper budgetting? I need help getting started…

Welcome! You’ve already done the hard part by getting started :grin:

It’s important to remember that budgeting is a fluid process. You’ll start with your best guess, then look at your numbers over time and continually adjust.

Whether you’re very detailed or very generalised is up to you, but I would start with just a few envelopes at first while you learn your own patterns. For example, you might have one envelope for “fixed payments” that includes housing, utilities, car payments, etc. I’d create another for “food”, divided into groceries and dining out. Then you’ll need one for additional essentials like shampoo, toothpaste, etc. Finally, create one for Savings even if you’re not putting anything in it yet. You can create sub-envelopes too if you prefer more detail, but I’ve found that too much detail can backfire in the beginning.

Using your best guess for income, subtract the bills you must pay every month, then divide the rest between your other envelopes by priority. It’s ok if it’s not accurate for the first few months; you can keep adjusting it until you get it dialled in. You can also move money between envelopes when you’re over or under.

After you’ve been using a budget for a while, you’ll be able to see patterns that will guide how you adjust your future allocation. Eventually you’ll have a budget that best fits your needs and spending patterns, based on how you’ve been using your money.

Hope that helps!

Hi. Thanks for your help so far :slight_smile:

Do i put in only this months payments or last months too and/or so on? What does “expense” mean? And “credit”? My bills are paid via direct debit so :woman_shrugging:

Great questions!

This is up to you, but you might keep things simple by only recording your new spending going forward.

You’ll still need to create your Envelope categories so you can record your spending against those Envelopes when it happens.

“Expense” typically means an outflow of money, like when you purchase something at the grocery store, or purchase movie tickets.

“Credit” is often used interchangeably with “refund.” You’ll want to record a credit in Goodbudget when you receive a refund for an item you returned to Target, for example.

Hope that helps!

Karisa