Last Updated: June 2026
How To Make A Budget For Beginners: Complete June 2026 Buyer’s Guide
By Marcus Hale — 14 years self-educating in personal finance, former bank loan officer, Denver Colorado
The Short Answer
If you’ve never made a budget before, the biggest mistake isn’t picking the wrong method — it’s picking nothing and hoping for the best. I did that in my 20s and ended up with credit card debt that took me years to dig out of. For most beginners, a dedicated budgeting app with guided setup beats a blank spreadsheet, because the structure keeps you from skipping the hard parts. YNAB (You Need A Budget) is the tool I’d point a first-time budgeter toward first — it forces you to assign every dollar a job before you spend it, which is the habit that actually changes behavior.
Who This Is For ✅
- ✅ Someone who has never made a monthly budget and doesn’t know where to start
- ✅ A person who knows they’re spending more than they should but can’t identify where the money is actually going
- ✅ A couple or household trying to get on the same page financially for the first time
- ✅ Anyone who’s had a recent income change — new job, pay cut, growing family — and needs to rethink their monthly numbers
Who Should Skip This Guide ❌
- ❌ Someone already using a budgeting system that’s working — if it’s working, keep going; this guide is for people starting from zero
- ❌ A person in active financial crisis looking for debt relief, bankruptcy guidance, or legal financial help — that’s beyond general budgeting education and requires a certified financial counselor or attorney
- ❌ An investor primarily looking to optimize a portfolio — budgeting tools aren’t investment platforms; consult a CFP for investment planning
- ❌ Someone looking for tax preparation software specifically — budgeting and tax filing are different tools solving different problems
How Marcus Evaluated These
I came at this from two angles. First, my own experience: I made every beginner budgeting mistake there is — no system, vague intentions, and the classic “I’ll track it in my head” approach that never works. When I finally got serious about money in my late 20s, I tested practically every budgeting method I could find. Some stuck. Most didn’t. The ones I recommend here are the ones that helped me and that I’ve seen work consistently for people across different income levels and financial situations.
Second, my time as a bank loan officer gave me a useful outside view. I reviewed thousands of loan applications over the years — mortgage, auto, personal — and the applicants who came in with organized, written budgets consistently made stronger cases and understood their own finances better. People who had never tracked their spending often genuinely didn’t know their own monthly obligations. That’s not a judgment; it’s just what I saw. The tools and methods in this guide are evaluated on one question: will they actually help a real beginner build a habit, not just download an app and forget about it two weeks later?
Quick Reference Breakdown
| Option | Best For | Monthly Fee | Minimum Balance | Marcus’s Rating |
|---|---|---|---|---|
| YNAB (You Need A Budget) | Beginners who want guided, zero-based budgeting | ~$14.99/month or ~$99/year — verify current pricing at ynab.com | None | 5/5 |
| Mint (now Credit Karma) | Passive trackers who want automatic categorization | Free — verify current availability | None | 3/5 |
| EveryDollar | Beginners following the Dave Ramsey zero-based method | Free basic tier; paid tier available — verify at ramsey.com | None | 3.5/5 |
| Google Sheets / Excel | DIY budgeters who want full control with no fees | Free (Google Sheets); Microsoft 365 subscription for Excel | None | 3/5 |
| Monarch Money | Couples or households managing money together | ~$14.99/month — verify current pricing at monarchmoney.com | None | 4/5 |
| Pen and Paper | Anyone who retains information better by writing by hand | Free | None | 3.5/5 |
Rates and terms change frequently — verify directly with each provider before subscribing.
Top Picks: Marcus’s Recommendations
| Pick | Why Marcus Recommends It | Best For | One Drawback |
|---|---|---|---|
| YNAB | Forces proactive budgeting — you assign money before you spend it, not after. Historically the strongest behavior-change tool I’ve tested. | Beginners serious about building a real budgeting habit | Monthly subscription cost may feel like a barrier; free trial helps you decide before committing |
| Monarch Money | Built with shared household budgeting in mind — both partners can see the same picture in real time, which reduces the “money fights” problem | Couples or anyone sharing finances with another person | Fewer zero-based budgeting features than YNAB if that method matters to you |
| Google Sheets with a Template | Zero cost, completely flexible, and forces you to understand your numbers because you’re building the structure yourself | Hands-on learners or anyone not ready to pay for a tool | Requires self-discipline to maintain; no automation or reminders built in |
What Marcus Likes ✅
- ✅ YNAB’s zero-based approach trains you to give every dollar a job before the month starts — this is the method I wish I’d learned in my 20s instead of figuring it out the hard way
- ✅ App-based tools generally sync with bank accounts automatically, which removes the friction of manual entry and makes it easier to stay consistent week over week
- ✅ Monarch Money’s shared view solves a real problem for couples — both people seeing the same data at the same time is genuinely useful for household financial conversations
- ✅ Google Sheets templates (freely available from multiple sources) give beginners a real starting framework without requiring any financial knowledge to build from scratch
- ✅ Free trials and free tiers exist across most of these options, meaning you can test before you commit to any paid subscription
Where These Fall Short ❌
- ❌ Apps are only as good as your consistency — every tool on this list has been abandoned by beginners after two weeks; the app doesn’t build the habit, you do
- ❌ Automatic categorization is frequently wrong — I’ve seen budgeting apps categorize a hardware store run as “entertainment” and a pharmacy purchase as “groceries”; plan to review and correct categories manually, at least at first
- ❌ None of these tools address the underlying behavior — if overspending is connected to stress, anxiety, or relationship dynamics around money, a budgeting app won’t fix that; a financial therapist or counselor may be worth considering
- ❌ Paid apps represent an ongoing cost — at roughly $99–$180 per year depending on the tool, the subscription needs to deliver enough value to justify itself; if you won’t use it consistently, free options are the better starting point
How I Tested These
I’ve personally used or tested each method listed here over the past several years — some briefly, some for extended periods. My evaluation looked at three things: how easy is it to set up in the first week when motivation is high and confusion is highest, how well does it hold up when life gets complicated (irregular income, unexpected bills, missed weeks), and whether I’d actually recommend it to my wife or a friend starting from zero. I did not receive compensation from any of the tool providers for this guide. Affiliate links are disclosed in MoneyCompass’s editorial policy — my evaluations are not influenced by those arrangements.
Marcus’s Verdict
For most beginners, I’d start with YNAB’s free trial. Thirty-four days is enough time to go through at least one full budget cycle and see whether the zero-based method — every dollar assigned before it gets spent — actually changes how you make decisions. That method is what changed my approach to money, and it’s what I see working for people who stick with it. If the subscription cost genuinely doesn’t fit your budget after the trial, Google Sheets with a free template is a legitimate alternative that costs nothing and teaches you more about your own numbers because you’re doing more of the work yourself.
If you’re budgeting as a couple or household, Monarch Money is worth a look specifically because the shared access feature solves a problem that none of the solo tools handle as cleanly. Whatever tool you choose, the method matters more than the software. Pick one, run one full month, and adjust from there. Don’t switch tools mid-month if it’s not going perfectly — that’s normal, and starting over with a new app is usually just avoidance. I’ve been there. Give it the full month.
Authoritative Sources
- Consumer Financial Protection Bureau
- Investopedia Personal Finance Education
- NerdWallet Personal Finance Research