Starting the year with a well-thought-out budget can be a game changer.

I know what you’re thinking: budgeting sounds boring. But here’s the thing. Without a budget, you’re guessing. And guessing with your money is how smart people end up broke.

I’ve created a simple budget template that breaks everything down into 3 clear categories. Download it for free below, or keep reading to learn exactly how to use it.

Used by hundreds of professionals across Switzerland

Why Budgeting Comes Before Investing

If you’re eager to start investing, I get it. But budgeting is the foundation.

In my complete guide on how to start investing in Switzerland, I explain that creating a budget is the very first prerequisite. Before you put a single franc into the stock market, you need to know exactly where your money goes.

Here’s a scenario I see constantly. You’ve got CHF 500 to invest this month. Then your car breaks down. Repair costs CHF 300. Without a budget, you might invest that CHF 500 anyway, not realizing you’re now short on cash for actual living expenses.

With a budget, you see the full picture. You know you have CHF 200 left after the repair. That’s what you can safely invest.

Investing without a budget is like building a house on sand. It might look good for a while, but one unexpected expense and everything collapses.

3 Simple Steps to Create Your Budget

Let me introduce you to Alice. She’s 30, single, works a corporate job earning $60,000 a year. Her take-home pay after tax is about $4,500 per month. She also teaches yoga on the side, which brings in an extra $500.

Her dream? Buy her first apartment. Price tag: around $200,000. She needs a $40,000 down payment.

Sound familiar? Let’s walk through how Alice built her budget using these 3 steps.

Step 1: Assess Your Situation and Set Clear Goals

Before you create any budget, take a close look at your current financial situation. Review your income, expenses, and debts from the previous year. This helps you understand where your money actually went, not where you think it went.

Then set clear financial goals for the new year. Not vague goals like “save more money.” Specific goals. Goals with numbers.

Alice’s approach:

She reviewed her total monthly income: $5,000 ($4,500 salary + $500 yoga). She hadn’t invested yet but planned to start. Her big goal? Save $40,000 for an apartment down payment as quickly as possible.

That specific goal gave her budget a sense of purpose. Every decision became clearer: “Does this help me reach $40,000 or not?”

Step 2: Split Your Expenses into 3 Categories

This is where most people get confused. They track expenses randomly without structure. Here’s a simpler approach. Split everything into three categories:

1. Non-Discretionary (Must-Pay)

These are your fixed expenses. You can’t really change them much.

Expense	Description
Rent	Housing costs
Transportation	Car, public transport
Utilities	Water, electricity
Health Insurance	Required in Switzerland
Groceries	Basic food needs

2. Discretionary (Can Adjust)

This is where you have flexibility. You won’t end up on the street if you cut back here.

Expense	Description
Dining Out	Restaurants, takeaway
Entertainment	Movies, concerts, events
Clothes	Non-essential purchases
Drinks	Coffee, bars, alcohol
Subscriptions	Netflix, Spotify, YouTube Premium

3. Saving and Investing (Capex)

In finance, we call this Capital Expenditure. These are investments in your future, not day-to-day expenses.

Investment	Description
Stocks	Individual company shares
ETFs	Baskets of investments (learn more about ETFs)
Mutual Funds	Professionally managed funds
Education	Courses, training, books
Savings	Emergency fund, down payment

Here’s the key insight: prioritize investments that provide long-term benefits over short-term pleasures. A training course that helps you earn more is worth more than a fancy dinner you’ll forget next week.

Alice’s breakdown:

Category	Monthly Amount	Items
Non-Discretionary	$3,000	Rent, transportation, health insurance, groceries, utilities
Discretionary	$1,000	Clothes, drinks, dining out, movies, subscriptions
Saving & Investing	$1,000	Stocks, ETFs, investing course
Total	$5,000

Her budget was balanced. Every dollar had a purpose.

Step 3: Monitor, Adjust, and Grow

Creating a budget is step one. Sticking to it is where the real work begins.

Monitor your spending regularly. Weekly is ideal, monthly at minimum. If you notice overspending in a category, make adjustments before the month ends.

I get it, saving can be easier said than done. But small changes add up faster than you think.

Alice’s adjustments:

After a few months, Alice wanted to accelerate her savings. She looked at her discretionary spending and made two simple changes:

Change	Monthly Savings
Cut dining out by cooking at home	$200
Chose budget-friendly activities (hiking, swimming in the lake instead of paid entertainment)	$100
Total Extra Savings	$300/month

That’s $3,600 extra per year. Just from cooking more and hiking instead of going to movies. These changes significantly accelerated her progress toward the $40,000 down payment.

Alice’s Complete Budget: Before and After

Before Adjustments:

Category	Amount
Non-Discretionary	$3,000
Discretionary	$1,000
Saving & Investing	$1,000

After Adjustments:

Category	Amount
Non-Discretionary	$3,000
Discretionary	$700
Saving & Investing	$1,300

Same income. Same life. But $300 more per month going toward her dream apartment.

Download Your Free Budget Template

I’ve created the same template Alice used, adapted for Swiss residents. It includes:

• Income tracker (salary, side income, investment returns)
• 3-category expense breakdown (non-discretionary, discretionary, Capex)
• Monthly monitoring sheet (track actual vs planned)
• Goal progress tracker (see how close you are to your target)

The template works in Excel and Google Sheets. Fill it out once, update it monthly, and watch your savings grow.

Ready to Start Investing?

Once your budget is in place, you’re ready for the next step: investing.

If you want to learn how I built a 7-figure portfolio starting with just $500, I run a free live investment masterclass where I walk you through my exact framework. No sales pressure. Just real education.

You can also read my complete guide on how to start investing in Switzerland for the full step-by-step process.

But remember: budget first, invest second. Get the foundation right, and the rest becomes much easier.

Watch the Full Video

Want to see me walk through these 3 steps in detail? Watch the full video on my YouTube channel where I explain Alice’s example and share my Chinese saving secrets.

This content is for educational purposes only and does not constitute financial advice. Consult a qualified financial advisor for decisions specific to your situation.