Personal Finance Hacks

How to make a budget in 2022

July 13, 2022

3 Minute Read

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Budgeting is that one thing most people dread because they think it’s limiting or can be time consuming. However, having a monthly budget can be freeing and helps create a path to financial success. Budgeting is like any other discipline, it takes practice, continuous effort and time to master it and yes, it can be mastered! So the question remains, how to make a budget? Read on to learn about the right advice on making your budget in 2022.

First Things First

When done well, budgeting will enable you to do these four things: cover your daily life expenses, pay off your debts, save for the future, and enjoy your money. Before even starting to make a budget, the first thing to do is set financial goals, this will serve as a guide throughout the process. Some examples of financial goals include: build an emergency fund, get out of credit card debt, improve credit score, buy a home, pay off student loans debt, pay off car loan…

Woman using smartphone at her computer.

Start Making Your Budget

Once you are ready to start working on your budget, list and add up your total income from all sources: part-time or full-time job, rent income….Once you have that total then it’s time to take a look at your total of your expenses (tip: keep your receipts from an entire month and use them as a guide to find out your total expenses). And make sure your expenses and debts are below your income; if not you might be insolvent and will need the expertise of a Licensed Insolvency Trustee to walk you through the process and find the best option for you either filing for bankruptcy or a consumer proposal. But if you are not dealing with insolvency, you can go ahead to the next step. Follow the 50/30/20 rule:


  • 50% of your income for needs: housing, food, utility bills, insurance, and childcare
  • 30% of your income for wants: travel, entertainment, and dining out
  • 20% of your income for savings: investing, savings account


A very important rule when budgeting is always making sure the four walls are covered: food, shelter, transportation and clothing. It is crucial to first make sure you have money for these four areas of your life and then you can allocate the rest of your income to other areas such as paying off debts or saving.

Image of a budget jar, with coins inside.

Take Heart, There is Help!

Additionally, there is good news for those who require extra help with coming up with a budget. Many apps exist to help track your transactions and keep a close eye on your budget right from your phone. Here is a list of some of the most recommended apps: Mint, Simplifi, PocketGuard, Personal Capital, and YNAB. These apps can help you have a better understanding and a good grip of your income and spending. Most apps also connect to your bank account and credit cards to help you keep track of your spending and see what transactions are being carried out.

Make Your Budget Work for You:

  • Cover your four walls first (food, shelter, transportation and clothing)!!
  • Stick to your budget once it’s set!
  • Spend less than you make!
  • Use the 50/30/20 rule to build your budget (50: needs, 30: wants, 20: savings)!