by Chelsea Springli 
Building a better budget doesn’t have to be overwhelming. A thoughtful budget shows you exactly where your money is going, highlights opportunities to save, and keeps you on track for future goals. At Alltru Credit Union, we’ve helped thousands of St. Louis families gain control of their finances with a few simple strategies. Here’s how you can get started in just five easy steps.
Step 1: Review the Past Year
See where money went, what changes you can make, and how to budget for the upcoming year. You can compare how much money your household brought in and see where it all went throughout the year by reviewing your online account statements. I’m in charge of paying the bills in my household and budgeting is something that I want to do better this year. So, knowing how much I spent last year has given me a better idea of how much I need to set aside each month for my expenses this year.
Just knowing how much you spent last year won’t make a difference unless you put what you learn into action. Group like items together into different categories. For example, your Food category might consist of grocery runs, your morning coffee, and more. Your Entertainment category might consist of your Spotify, YouTube Premium, and Disney+ subscriptions.
Action Steps:
- Download the last 12 months of bank and credit card statements.
- Highlight or tag recurring expenses (utilities, subscriptions, childcare, etc.).
- Total up how much you spent in each major category: housing, food, transportation, entertainment, etc.
- Flag expenses that surprised you or felt unnecessary.
- Create 4–6 broad categories (e.g., Housing, Food, Transportation, Savings, Entertainment) to simplify tracking.
Step 2: Predict the Future
Next, take a look at any new expenses you know are coming. Maybe you’ve got a wedding—or several—on the calendar. Maybe there’s a family vacation in the works and you’ll want extra spending money. Price out these events now so you know exactly what to save. Putting that money in a separate savings account can help you stay organized and avoid stress later. We use separate accounts for this ourselves, especially since our year tends to fill up with events we can’t skip.
We have another blog, that walks through this process. Learn more about how to predict the future with budgeting.
Action Steps:
- List all upcoming one-time events this year (vacations, weddings, school fees, etc.).
- Estimate the cost for each event — be realistic.
- Divide each total by the number of months left until the event to know how much to save monthly.
- Open a separate savings account or sub-account for these expenses.
- Automate monthly transfers into those accounts.
Step 3: Adjust as Necessary
With all the numbers laid out, you can really see whether your cash flow is heading where you want it to go. You might find that your expenses outweigh your income, which is not good for your financial health. Or you might discover that you spend more than you’d like on discretionary items while coming up short on savings. If this is the case, spot where you can adjust your spending and cut back on unnecessary purchases.
My husband and I are working on not eating out as much during the week, and tracking our purchases in online banking. We also frequently ask ourselves whether what we want to buy is a need or a want. That way, we can assign it to the correct line item in our budget.
Action Steps:
- Compare your total monthly expenses to your monthly income — highlight any gaps.
- Identify one to two categories where you can immediately cut back (e.g., dining out, streaming services).
- Set realistic spending limits for each discretionary category.
- Use Alltru’s online or mobile app to track expenses weekly.
- Create a simple “need vs. want” checklist before every non-essential purchase.
Step 4: Know Your Goals
Paying your current bills is only part of the picture. You also need to plan for the fun stuff and the big milestones ahead. For us, this category is huge—our top priority right now is paying down debt so we can strengthen our overall financial profile. Knowing that goal helps guide every budgeting decision we make.
Your goals may look different, and they can fall into both short-term and long-term buckets:
Short-term:
- Starter emergency fund
- Next year’s vacation
- Birthday party
Long-term:
- Retirement
- Home down payment
- Child’s college fund
Action Steps:
- Write down 3 short-term goals (e.g., emergency fund, new laptop, upcoming vacation).
- Write down 3 long-term goals (e.g., retirement, down payment for a home, child’s college fund).
- Put a dollar amount and a target date next to each goal.
- Decide what percentage of your income you can dedicate to each goal.
- Set up automatic transfers toward at least one goal this month.
Step 5: Make Room for Change
You have everything laid out, it looks perfect, you’re ready to start and you realize that this is a big step and a huge change for your family. Making room for change can be hard, but it will strengthen your financial habits and goals.
Here’s an example timeline:
January
- Groceries
- Credit card payment
February
- Groceries
- Credit card payment
- Pet supplies
- Emergency fund
March
- Groceries
- Credit card payment
- Pet supplies
- Emergency fund
- Entertainment
- Kids clothes
And then keep adding a little bit more each month until you’ve included all of your needs and wants in your budget.
Action Steps:
- Start small: track just two to three categories (like groceries, dining out, and debt payments) for the first month.
- Add new categories gradually as you get comfortable.
- Schedule a 15-minute monthly “budget check-in” on your calendar to review progress.
- Adjust limits or goals when your income or expenses change — don’t wait for year-end.
- Celebrate small wins (like meeting your first month’s savings goal) to keep yourself motivated.
Budgeting is about gaining control, not losing freedom. Start small, stay consistent, and keep building on each win. The results will speak for themselves.
