How to Budget Monthly Income – What I Learned After Being Broke at ₹1,500

How to Budget Monthly Income

I never thought I needed a budget.

I wasn’t earning a fortune, but I also wasn’t broke. Every month, money would come in, and somehow… it would just vanish. I used to tell myself things like “I don’t really spend much” or “I’m sure I’ll save next month.”

Spoiler: I didn’t.

It wasn’t until I had less than ₹1,500 left in my bank account, two weeks before payday, that I realized I had no idea where my money was going.

The First Step: Facing the Numbers

Let me be honest. Sitting down and writing out my income and expenses for the first time was uncomfortable. It felt like admitting failure. But also—relieving. I finally knew where I stood.

Here’s what I wrote on a random piece of paper:

• Salary: ₹40,000

• Rent: ₹10,000

• Groceries: ₹5,000

• Subscriptions (Netflix, Spotify, etc.): ₹1,200

• Eating out: ₹3,500

• Uber & fuel: ₹2,000

• Random stuff (I didn’t even remember what): ₹8,000

• Leftover? Not much.

It was clear. I wasn’t broke because I didn’t earn enough. I was broke because I didn’t plan.

What Budgeting Really Means (It’s Not Just Math)

Budget is an uninspiring word that can make us feel restricted. Still, I found that budgeting helped me gain more freedom in my life.

This did not prevent me from spending the same amount. This allowed me to purchase the things that were significant to me. As a result, I did not have to feel guilty when I put a delivery order in or clicked on the online shopping button.

If you’re one of those who feel aversion to the idea of swotting up on budgeting, I know that feeling. Stick with me for now. Let me explain the 5 simple things I did to fix my mess and you won’t need any spreadsheets for it.

Step 1: Write Down Your Real Income

First things first, don’t count what’s written on your offer letter. Count what actually lands in your account after tax, PF, deductions, etc.

If you make money from freelancing, tutoring, or any side hustle — include that too.

Your “real” monthly income is the amount you can spend or save. Nothing more.

Step 2: Track Every Rupee (Yes, Even the ₹50 Tea)

For an entire month, I was sure to keep track of how much money I spent. That means from chai at the stall to rides in an Uber and drinking beer on the weekend.

At the beginning, I only made lists in the Notes app on my phone. After that, I switched to using the free app Money Manager. Another option could be Walnut or you could use Google Sheets instead.

It may not sound exciting, but it actually only requires 2 minutes each day and the insights are amazing.

Step 3: Divide Your Money with a Simple Rule

Once I knew where my money was going, I started following a loose version of the 50/30/20 rule (but made it flexible):

• 50% for needs: rent, food, transport, bills

• 30% for wants: movies, dinners, subscriptions

• 20% for savings: emergency fund, SIPs, travel fund

Some months my savings were just 10%. That’s okay. The idea is to stay consistent, not perfect.

Step 4: Automate the Boring (and Important) Stuff

I set up auto-debits for:

• My SIPs (as low as ₹500/month)

• Phone bills

• Rent transfers

This helped in two ways:

1. I stopped “accidentally” spending my savings

2. My brain had fewer things to worry about

Step 5: Do a 10-Minute Review Every Month

At the end of each month, I take 10 minutes to review:

• How much I spent

• What categories went over budget

• What I can improve next month

No stress. No judgment. Just awareness.

Final Thoughts: Budgeting Is About Respecting Your Money

Here’s what I’ve learned after a year of budgeting:

• You don’t need to earn more to save more

• Budgeting doesn’t mean saying no to fun

• Being broke at the end of the month isn’t normal

• You don’t need a finance degree to control your finances

You just need to start.

Right now. Open your notes app. Type your income. Make a list of your fixed expenses. Track your spends for 7 days.

That’s it. Don’t overthink.

Because once you take control of your money, you take control of your life.

FAQ: Real Questions from Real People

Q: What if my income changes every month?
A: Budget based on your lowest average income from the past 3 months. Save more during good months, and cover essentials during lean ones.

Q: I tried budgeting but couldn’t stick to it. Any tips?
A: Make it flexible. Don’t punish yourself. Start with 3 categories: bills, fun, and savings. Build from there.

Q: Do I need to use budgeting apps?
A: Not at all. A notebook or phone notes are enough. But apps like Money Manager, Wallet, and YNAB help a lot once you get into it.