Gathering the Information You Need to Build Your Budget
A no-shame guide to getting clear on your money
Have you ever opened your banking app, glanced at the balance, and immediately felt a mix of confusion and guilt?
You think, I’m making good money — so where is it all going?
Before you can build a budget that actually works, you have to understand what’s really happening with your money right now.
This post walks you through how to gather the information you need — without the shame spiral that usually comes with it.
Start with the Right Mindset
Before you even pull up a single bank statement, take a deep breath.
This process can stir up all kinds of emotions — guilt, frustration, anxiety — and that’s normal.
When those feelings come up, pause. Take a deep breath. Remind yourself: this is just information.
You’re not grading yourself. You’re learning how to make better choices going forward.
“Do the best you can until you know better. Then, when you know better, do better.”
What You’ll Need to Collect
Bank statements
Credit card statements
Pay stubs
Gather three to six months of each. Print them if you can — it’s often easier to mark up and highlight. If not, download them digitally and keep them in a secure folder.
Why Three to Six Months Matters
One month won’t tell the whole story. Three to six months shows your real patterns — your average income, spending habits, and those sneaky once-a-year expenses.
Using three to six months worth of data:
Captures your true income and spending patterns
Reveals irregular or seasonal expenses
Smooths out ups and downs for a realistic baseline
Step One: Understand Your Income
Budgeting starts with understanding what comes in.
If your pay is consistent: Add up one month of paychecks — that’s your baseline income.
If your income is variable: Add up the last 3–6 months and divide by the number of pay periods for your average.
If you get bonuses or unexpected income: Don’t rely on them in your budget. Treat them as extra — and try the 90/10 rule.
Save or invest 90%. Enjoy 10%.
Step Two: Review Your Expenses
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Bills that stay roughly the same each month — rent, insurance, subscriptions.
List each with who you pay, how much, and when it’s due.
Mark them as necessary (must-pay) or optional (nice-to-have).
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Spending that changes month to month — groceries, gas, dining out, entertainment.
Add up each category for several months and find your average. -
Costs that come up less often — memberships, property taxes, annual insurance.
Record the amount, due date, and frequency.
Quick Win — Subscription Audit
The average person spends $219/month on subscriptions — and many don’t even realize it.
Take ten minutes to scan your statements. Cancel anything you’re not using or that doesn’t add real value.
Little changes like this can free up cash for the things that actually matter.
Awareness Before Action
You’ve just laid the foundation for your budget.
This step isn’t glamorous — it’s more spreadsheets than sparkle — but it’s powerful.
Because awareness is the first step toward lasting change.
When you understand where your money is going, you can start directing it toward what matters most.
“ Building awareness around your spending can feel uncomfortable — but it’s the kind of discomfort that leads to growth.
You’re not fixing something broken. You’re building a stronger foundation.
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Watch the Full Step-by-Step Video
Prefer to watch instead of read?
In this week’s episode, I walk you through exactly how to gather your financial information — with zero shame and plenty of clarity.
