How to Create a Realistic Monthly Budget (And Stick to It)

ACCRA— In a world of rising costs, fluctuating incomes, and endless financial temptations—from iPhones to impulse Jumia checkouts—managing money effectively can feel like running on a treadmill that never slows down. For many Ghanaians and global workers alike, the problem isn’t earning money; it’s keeping it.

At the core of financial clarity is an often-underrated tool: the monthly budget.

But if the word “budget” conjures thoughts of restriction, spreadsheets, or guilt, financial planners suggest reframing it. “A budget is not a punishment—it’s a plan for freedom,” says Clara Asante, a personal finance coach based in East Legon.

Here’s how you can build a realistic budget that actually works—and stick with it.

Step 1: Know Where You Stand

Before you plan where your money should go, find out where it’s going.

Track your spending for 30 days. This includes:

• Rent or mortgage

• Transportation

• Airtime and data

• Electricity and water

• Groceries and takeout

• Subscriptions (yes, even that Netflix account you forgot)

• Transfers to family or dependents

There are apps like Mint, Spendee, and local options like ExpressPay, or you can go old-school with pen and paper.

Step 2: Categorize and Prioritize

Once you’ve gathered your data, group expenses into three buckets:

1. Needs: Fixed expenses like rent, utilities, transportation, food

2. Wants: Dining out, subscriptions, leisure spending

3. Goals: Savings, debt repayments, investments

Financial experts recommend the 50/30/20 Rule:

• 50% for needs

• 30% for wants

• 20% for savings/debt

For low-income earners, this may need adjustment, but the core idea holds: pay yourself first, then spend the rest.

Step 3: Build the Actual Budget

Now build a monthly budget using your average monthly income (after tax or deductions). Use this base to allocate fixed amounts to each category.

Tip: Always overestimate expenses and underestimate income. It’s safer to be surprised by a surplus than blindsided by a deficit.

Include a “miscellaneous” line for unexpected costs—like your cousin’s unplanned wedding.

Step 4: Automate and Adjust

Once your budget is set, make it easier to follow:

• Automate savings and bill payments where possible.

• Use mobile banking alerts to track spending.

• Review your budget weekly, not just monthly.

The most common mistake people make? “They create a budget once and never adjust it,” says Naa Adjeley Mensah, a budget coach and entrepreneur. “Your budget should evolve with your lifestyle.”

Step 5: Make Room for Joy

Strict, unrealistic budgets often lead to burnout. Budgeting isn’t about cutting out everything you love—it’s about making room for what truly matters.

If weekend waakye or data for YouTube tutorials fuels your mental well-being, budget for it.

The Discipline Gap

Creating a budget is one thing. Sticking to it is another.

Accountability is key. Some use apps. Others use a budgeting buddy. And some simply write it on their bedroom mirror.

“Treat your budget like a business plan,” says Samuel Kwame Boadu, Founder at SamBoad Holdings Ltd. “Track performance monthly and audit your spending like a CEO.”

Bottom Line

A budget is not a financial straitjacket. It’s your financial GPS.

In a time where financial stress is rampant, having a clear, honest, and flexible plan for your money is more than a smart habit—it’s a survival tool. Whether you’re earning GHS 1,000 or GHS 10,000 a month, the key is intention over impulse.

Because, as the saying goes: If you don’t tell your money where to go, you’ll wonder where it went.