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5 Steps to build a Budget blog

5 Steps to build a Budget

When it comes to accumulating money for investments like Bitcoin and other Cryptocurrencies, many people are having struggles. It starts with the calculation of your income, the tracking of your expenses and finally the setting of a monthly budget. If you feel that you have no money left at the end of the month, read the next steps carefully!


  • Learn how to cut costs
  • Pay off debt
  • Build a budget which works out for you

Creating your first budget can be time-consuming and complicated. In fact, only 45% of American families have managed to build a monthly budget. But the effort definitely pays off. Developing a budget that can sustain you in the long run is essential for building wealth while helping you to reduce debt and most important: cut costs. So if you want more money at the end of the month, this is exactly for you. Our blueprint to build a budget consists of 5 steps.

Step 1: Calculate your Income

It all starts with finding out your income after taxes. Most people receive a regular paycheck and therefore have a single income stream, the so called ‘earned income’. Some people also have additional income streams like ‘business income’, ‘interest income’, ‘rental income’ and others. It is usually reasonable to have multiple sources of income. The higher the sum of your income the more you can spend and the more money you will have left at the end of the month.

To calculate your income, you simply add up everything you earn every month and write it down on a piece of paper. That’s the amount you have available. Make sure to never spend more than this amount on a regular basis!

Step 2: Track your Expenses

The next step is to keep an eye on your expenses. For many people this is the most complicated part. Anyway, you should definitely identify your expenditure and write it down. This makes it much easier for you to identify on what you are spending the most and where you can make cuts easily.

Start listing all your fixed expenses. These are regular monthly bills such as rent or mortgage, utilities or car payments. It is unlikely that you can reduce them, but it can be helpful to know how much they total. In somes you can think about the necessity for a music streaming account or a second cell phone contract.

Next, list all your variable expenses. Credit card statements and bank statements are a good place to start listing monthly expenses, which are changing from month to month. Examples are money for food, entertainment, clothes, cigarettes or alcohol. This is an area where you can cut your expenses without much effort.

Step 3: Evaluate your Goals

Having goals when it comes to budgeting is more important than you may think! You always have to be aware of why you are doing this and where you want to go. It is also important to adjust these goals, as your motivation may change over time.

You may have planned to repay debts or save a home equity deposit, but once you reach that goal, you may lose motivation to stick to your budget. That’s why you need to regularly adjust your budget goals to achieve them consistently.

For example, a possible goal would be to save $2000 over the next 6 months to start investing into Crypto. Do you have some reasons and goals why you need a budget? Great – write them down too!

Step 4: Set a Budget

The next step is to calculate if you can get along with your money. Maybe you have no problems with your money anyway, but a calculation always helps to become aware of your situation. Count the sum of all your incomes and deduct the sum of all expenses.

If the result is positive, it means that you do not spend more than you take! That’s very good. But maybe you can still rethink your expenses a little and save even more money. 

If the result is negative it means that you can not get along with your money! But do not worry, you’re not alone with that! Most households have this problem. You should now think carefully about your spending and see where you can make savings! You can not live the lifestyle if you can not afford it, or you will be stuck in the present situation forever! You have to earn more money and spend less.

Your first goal should be to reduce debt if you have any. The longer you postpone debt, the more expensive it will be for you. (If you have investment debt for a cash flow property then this is not relevant). The more is left over at the end of the month, the more you can invest.

Step 5: Rinse And Repeat

Now we are getting into the implementation! That’s the part we can only encourage you and hope that you will start using our tips.

“The best plan is of no use
if you do not implement it.”

Keeping track of your budget takes about one hour per week, but will save you a lot of money in the long run. Once you have set a budget, you must adhere to it. Always track where you spend your money and save as much as possible.

Bonus Tips:


Pay for the important things first. Invest your money and pay off your debt automatically at the beginning of the month. The rest can be spent. But do not forget that you can not spend more than you can afford.


Reward yourself if you have reached your savings or investment goals! It’s important to stay motivated, so reward yourself! But do not spend your leftover money pointless. A wild party night will probably not make you happy in the long run and cost a lot. A nice evening with your partner probably costs less and ends with better memories.

Never give up

Failure to reach your goal in one month does not mean that you will not make the same mistakes next month. Take an hour, evaluate your mistakes and avoid them in the next month! You can do it!


Now you know how to build a budget and save money to start investing! It is never easy to cut off expenses. It can be really time-consuming and complicated. But if you stick to your plan and regularly improve it, the effort will definitely pay off. In the long run you can only generate wealth with a steadily positive income every month. It may be hard, but it is definitely possible!

If you have additional ideas on how to save money or methods which worked out great for you please let us know them in the comment section!