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Setting Up a Budget

Learn how to create an AWS budget to monitor your costs and receive alerts when your spending exceeds a set threshold.

10 minutes
Beginner

Overview

One of the most important things to do after creating your AWS account is to set up a budget. This practice helps you stay in control of your spending and avoid unexpected charges, especially when exploring the AWS Free Tier.

AWS Budgets allows you to set custom budgets to track your cost and usage. It notifies you when you exceed or are forecasted to exceed your budgeted amounts.

Prerequisites

  • An active AWS account
  • Access to the AWS Management Console

Step 1: Access the Billing Dashboard

First, navigate to the AWS Billing dashboard.

  1. Sign in to the AWS Management Console
  2. In the search bar, type "Billing" and select "Billing Dashboard"
  3. In the left-hand navigation pane, click on "Budgets"

Step 2: Create a Budget

From the Budgets dashboard, you'll create your first budget.

  1. Click the "Create budget" button
  2. Select "Cost budget" and click "Next"

Choose Budget Type

You have several options. For a simple budget to get started, choose "Simplified template" and select "Monthly cost budget".

Configure Budget Details

Fill out the following information:

  • Budget name: Choose a descriptive name, e.g., "Monthly Cost Budget"
  • Period: Select "Monthly"
  • Budget amount: Set a "Fixed" amount. For a free tier account, a small amount like $1 or $5 is a good starting point.
  • Scope: "All AWS services" is recommended for a simple budget.

Step 3: Set Up Alerts

Configure notifications so you're alerted when your costs approach your budget.

  1. Under "Alerts", click "Add an alert threshold"
  2. Set the "Threshold" to 80%
  3. Select "Actual" to trigger the alert when your actual spending reaches 80%
  4. Add your email address under "Email recipients"

Email and SNS Notifications

AWS will send an email notification when the alert is triggered. You can also configure an Amazon SNS topic to send notifications to other endpoints.

Step 4: Review and Create

Before you finalize, review your budget settings.

  1. Check the budget name, period, and amount
  2. Confirm that the alert threshold and email address are correct
  3. Click "Create budget"

Verify Budget Creation

You should now see your new budget listed on the Budgets dashboard. It will show you your current spend against your set budget amount.

Next Steps

With your budget in place, you are now ready to explore and build on AWS with confidence.

  • You will receive an email confirmation of your budget creation
  • Continue exploring other AWS services in our guides