How to Make a Budget for Beginners in St. Louis (5 Simple Steps)

Living in St. Louis offers a rich life—from the free museums in Forest Park to the incredible dining scene on The Hill. But enjoying everything our city has to offer (and saving for that dream home in South City or Chesterfield) requires one boring but essential thing: a plan for your money.

If you are wondering “how to make a budget for beginners” or looking for a simple monthly budget template, you are not alone. Creating a budget isn’t about restricting your freedom; it’s about giving yourself permission to spend without guilt.

In this guide, we are breaking down the most effective strategy for beginners—Zero-Based Budgeting—into five simple steps.

DISCLAIMER: I am not a licensed financial advisor, loan officer, accountant, or attorney. This content is for general educational and informational purposes only, and is not intended as professional financial or legal advice. Please consult a qualified, licensed professional for advice tailored to your personal situation.

What is Zero-Based Budgeting?

The most recommended method for beginners is the Zero-Based Budget. The concept is simple: Income – Expenses = $0.

This doesn’t mean you have zero dollars left in your bank account. It means you have given every single dollar a job before the month begins. Whether that job is paying rent, buying groceries, or going into your savings account, nothing is left accidental.

Step 1: Calculate Your Monthly Income

To start your personal finance journey, you need to know exactly what you are working with.

List your total monthly take-home pay. This is the money that actually hits your bank account after taxes and 401k deductions.
Pro Tip for Variable Income: If your income changes from month to month (like many people who have commission-based income!), budget based on your lowest expected income. If you make more, that’s just extra money for savings later!

Step 2: List Your Fixed Expenses (The “Four Walls”)

Start with the bills that must be paid to keep your life running. In the budgeting world, we often call these the “Four Walls”:

Housing: Rent or Mortgage.
Utilities: Electric, water, gas, internet.
Food: Groceries (basic needs, not fancy dinners out).
Transportation: Car payment, gas, insurance.

These are your fixed expenses—the non-negotiables.

Step 3: List Your Debt Payments

Before you get to the fun stuff, you must list the minimum payments for all your debts. This includes:

Student loans
Credit cards
Personal loans

Budgeting tip: Always budget for the minimum payment first. If you have extra money at the end of the budget, you can attack the debt with the highest interest rate.

Step 4: Budget for “Fun” and Variable Expenses

This is where most budgeting for beginners goes wrong. You must be realistic! If you enjoy dining out in the Central West End or grabbing coffee in the Loop, put it in the budget. Common categories include:

Entertainment/Dining Out
Subscriptions (Netflix, Spotify, Gym)
Personal Care/Clothing

Step 5: The “Fudge” Fund (and The Zero)

Life happens. You might forget a birthday gift or get a flat tire.

The “Fudge” Fund: Create a buffer category of $50-$100 for unexpected costs so they don’t derail your plan.
The Final Calculation: Subtract all your expenses (Steps 2-4) from your Income (Step 1).
- If you have money left over: Great! Assign it to savings or extra debt payments.
- If you are negative: You need to adjust. Look at your “Fun” category or see where you can cut back on variable expenses like groceries.

Why Budgeting Matters for Homebuyers

As a realtor, I see firsthand how a solid budget changes lives. When you know where your money is going, you can:

Save for a down payment faster.
Improve your debt-to-income ratio (very important for mortgage approval).
Buy a home with confidence, knowing exactly what monthly payment fits your lifestyle.

Your budget is the roadmap to your financial goals. Start today, keep it simple, and watch your savings grow!

Found this guide helpful? Next up, we will discuss “how to save for a down payment.” If you are ready to look for a home that fits your new budget, contact me today!

Saleh Ihmoud, REALTOR®

Coldwell Banker Realty – Gundaker

16505 Wild Horse Creek Rd, Chesterfield, MO 63017

(636) 532-0200