Budget Health Audit
Assess your financial health with our 10-question budget audit. Get your budget score, identify weak spots, and receive personalized tips to improve.
Do you know your exact monthly income after taxes?
Your budget is the foundation of your financial life. Whether you're saving for a house, paying off debt, or just trying to make ends meet, a healthy budget is essential for reaching your goals.
This Budget Health Audit evaluates 10 key areas of your financial life to give you a clear picture of where you stand—and actionable steps to improve.
🫙 The Jar Principle for Budgeting
Imagine your income as water flowing into jars. Each jar has a purpose: necessities, savings, fun, and giving. When one jar overflows while another stays empty, your financial system is out of balance.
The 50/30/20 Jar Rule: 50% to needs (housing, food, utilities), 30% to wants (entertainment, dining), and 20% to savings and debt payoff. Adjust based on your situation, but strive for balance.
The 5 Pillars of Budget Health
1. Income Awareness: Knowing exactly what you earn after taxes is the foundation. You can't build a budget on guesswork.
2. Emergency Fund: 3-6 months of expenses protects you from life's surprises. Without it, one car repair can spiral into debt.
3. Expense Tracking: What gets measured gets managed. Knowing where your money goes is the first step to controlling it.
4. Automation: Pay yourself first through automatic transfers to savings. If you wait until month-end, there's never anything left.
5. Debt Management: High-interest debt (especially credit cards) is a budget killer. Paying it off should be priority #1.
Common Budget Mistakes
Not budgeting for irregular expenses: Car maintenance, gifts, annual subscriptions—these "surprises" happen every year. Budget for them monthly.
Forgetting small purchases: $5 here, $10 there adds up to hundreds per month. Track everything for one month—you'll be shocked.
Lifestyle inflation: Every raise should increase savings, not spending. Before upgrading your life, upgrade your financial security.
Having no margin: If your budget is perfect with zero wiggle room, one unexpected expense breaks everything. Build in a buffer.
Quick Wins for Budget Improvement
Automate savings today: Even $25/paycheck adds up. Set it and forget it.
The 24-hour rule: Wait 24 hours before any non-essential purchase over $50. Most impulse buys fade.
Weekly money dates: Spend 15 minutes each week reviewing your spending. Awareness alone changes behavior.
Find your "latte factor": Everyone has one—a small recurring expense that adds up. Find yours and redirect it to savings.
Frequently Asked Questions
Aim for at least 20% of take-home pay. This includes retirement contributions, emergency fund, and other savings. If you're in debt, prioritize paying that off first, then build savings.