Budgeting doesn't have to be complicated. At its core, it's just answering two questions: how much money comes in, and where does it go? Here's how to create your first budget in 30 minutes.

Step 1: Calculate Your Take-Home Pay

Start with what actually hits your bank account, not your gross salary. After CPP, EI, and taxes, your take-home pay is what you have to work with.

Quick Take-Home Estimate:

$50,000 salary → ~$3,400/month take-home
$70,000 salary → ~$4,500/month take-home
$90,000 salary → ~$5,500/month take-home

Varies by province. Use our budget calculator for exact numbers.

Step 2: List Your Fixed Expenses

Fixed expenses are the same every month. Start here because these are non-negotiable:

Rent or mortgage
Utilities (average if variable)
Phone and internet
Insurance (car, tenant, life)
Loan payments
Subscriptions (Netflix, Spotify, gym)

Step 3: Estimate Variable Expenses

These change month to month. Look at your last 3 months of bank statements to get averages:

Groceries
Gas or transit
Dining out
Entertainment
Personal care
Clothing

Step 4: Add Savings Goals

Savings isn't "what's left over." It's a budget category. Include:

Emergency fund: 3-6 months of expenses
TFSA: $583/month to max ($7,000/year)
RRSP: For retirement (if high income)
FHSA: $667/month if saving for a home
Other goals: Vacation, car, wedding

Step 5: Do the Math

Add it all up:

Income - Fixed - Variable - Savings = ???

Positive number: Great! Add to savings or fun money
Negative number: You're overspending. Cut something
Zero: Perfect zero-based budget

Step 6: Track and Adjust

Your first budget is a guess. Track your actual spending for a month, then adjust. This is normal - it takes 2-3 months to dial in.

Sample First Budget

Monthly Take-Home: $4,200

Rent$1,500

Utilities$120

Phone/Internet$100

Transit$156

Groceries$400

Dining Out$200

Entertainment$100

Personal$100

TFSA Savings$400

Emergency Fund$200

Subscriptions$50

Total$3,326

Buffer/Unassigned$874

Common First Budget Mistakes

Forgetting irregular expenses - Car insurance, gifts, medical. Divide annual costs by 12.

No fun money - A budget without enjoyment won't stick.

Using gross income - Always budget with take-home pay.

Giving up after one bad month - Budgets need adjustment. Keep going.

The Bottom Line

A budget is just a plan for your money. Start simple: income minus expenses. Track for a month. Adjust. Repeat. You don't need a perfect budget - you need one you'll actually use.

Ready to Start Your Budget?

Waypoint Budget makes budgeting simple. Set up in minutes and track your spending automatically.