Smart Advice Budgeting

How to create a budget that works for you

Learn the basics of budgeting so you can buy the things you need and want while saving for the future.

CIBC Mar. 11, 2026 3-minute read

Budgeting doesn’t have to be difficult or mean cutting out things you enjoy. A budget puts you in control of your finances and makes you more aware of where your money's going. By looking at all your income and expenses, you'll see how much you can afford to spend each month. This big-picture view can help you set aside money for your long-term financial goals and treat yourself to things you enjoy, too.

1. Follow the 50/30/20 rule

A simple trick is to split your income into 3 spending categories: essentials, personal expenses and savings. Use the 50/30/20 rule. This means you allocate:

50% of your income for essentials. These are necessities like housing, transportation and food.
30% of your income for personal expenses. These are things like gifts, entertainment and personal items. It's easy to go over budget on this category, so be aware of your limits.
20% of your income for savings. These include short-term savings, for things like vacation, and long-term savings, for things like retirement.

Tip: There are many tools and apps you can use to create a budget. Try our online budget calculator.

2. Keep track of your spending

Now that you have a budget, it’s time to stick to it. Monitor your spending and make sure you’re staying on budget. Here are some tools to help you:

Want to track your spending as you go? Try the CIBC Mobile Banking® App. You can review all your withdrawals and purchases, and use tools like CIBC Insights to discover trends in where you spend your money.
If you use a CIBC credit card, your bill is automatically sorted into spending categories like restaurants and transportation. You can also set up budgets for each category. If you go over, you can receive an alert.

3. Review and adjust your habits

Once you create a budget, making adjustments won’t take a lot of time. At the end of each month, compare your actual spending to your budget. Hopefully, you stayed on budget and there's not much difference between the two.

If you exceeded your budget, determine where you went over and think about how to cut back on your expenses. You can also adjust some of your fixed costs. Try a better data plan or switch to a cheaper internet provider. It might take a little time to adjust your habits, but you'll get the hang of it.

If you spent less than planned, that's great. Set the money aside and consider putting it in a savings account.

Need some financial advice?

Book a chat with one of our advisors. They can help set you up for success, today and into the future.

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How to create a budget that works for you

1. Follow the 50/30/20 rule

2. Keep track of your spending

3. Review and adjust your habits

Need some financial advice?

Trending topics

Explore more helpful resources

Bundle to earn up to $850. Start with a CIBC Smart® Account.†, ‡ Qualifying actions apply.

How to create a budget that works for you

1. Follow the 50/30/20 rule

2. Keep track of your spending

3. Review and adjust your habits

Need some financial advice?

Trending topics

Explore more helpful resources

Bundle to earn up to $850. Start with a CIBC Smart® Account.^{†, ‡}Qualifying actions apply.