🚀Dollars and Sense: Unraveling AWS Budgets — A Simple Setup Guide🚀

🌈Introduction:

In this blog post, we will delve into the process of setting up budgets in your AWS account. Before we dive into the hands-on steps, let’s take a moment to explore the concept of AWS budgets, understand its significance, and highlight some best practices. This foundational knowledge will make it easier for you as we go step by step in setting up your AWS budget.

🌈What is AWS Budget?

AWS Budgets is a service offered by Amazon Web Services (AWS) that enables users to set, track, and manage custom budgets for their AWS usage and costs.

🌈why you might need it?

Here’s why AWS Budgets is valuable:

📌Managing Costs: AWS Budgets helps you control how much money you spend on AWS. By setting budgets, you decide the maximum amount you want to spend, making sure you stay within your budget.

📌Avoiding Overspending: It sends you alerts ahead of time if your AWS costs are getting close to or going over your budget. These alerts help you avoid spending too much and let you fix things before it becomes a problem.

📌Financial Planning: AWS Budgets is an important tool for planning your finances. It helps you match your AWS resource use with your budget, making sure your spending aligns with your business goals.

📌Customizing Your Budget: You can customize AWS Budgets to fit your needs. This means you can set budgets based on different factors like the service you use, linked account, tag, and more. This flexibility helps you create budgets that suit your specific business requirements.

📌Seeing Your Spending: AWS Budgets gives you a clear picture of how much money you’ve spent historically and currently. This helps you make smart decisions about where to allocate your resources and how to use AWS efficiently.

📌Using Resources Better: With AWS Budgets, you can figure out where you might be using too much or too little of your resources. This information helps you optimize your AWS resources for efficiency and cost-effectiveness.

📌Being Accountable: AWS Budgets encourages responsibility within your organization by showing everyone the financial impact of using AWS resources. This openness promotes careful management of resources.

To sum it up, AWS Budgets is a vital tool for businesses using AWS. It lets you control costs, avoid surprise expenses, and match your AWS spending with your overall business plans in a simple and customizable way.

🌈How to setup AWS Budget?

Setting up an AWS budget is a straightforward process. You can create and set up a budget in two ways:

▪Using a budget template (simplified)

▪Customizing a budget (advanced)

Using a Budget Template (Simplified):

What is it?

▪A pre-designed budget format provided by AWS for quick and easy setup.

How to Use:

▪Choose from a selection of predefined templates based on common budgeting scenarios.

▪Templates include preconfigured settings, making the process straightforward.

▪Ideal for users looking for a simplified and speedy budget creation process.

When to Choose:

▪When you have standard budgeting needs and want a hassle-free setup.

Customizing a Budget (Advanced):

What is it?

▪The ability to create a budget from scratch with personalized settings.

How to Use:

▪Start with a blank slate, defining every aspect of your budget according to your specific requirements.

▪Customize budget details such as budgeted amount, time period, and applicable filters.

▪Offers more flexibility and control over budget parameters.

When to Choose:

▪When you have specific, detailed budgeting needs that go beyond standard scenarios.

When choosing the ‘Customize Budget’ option, you can customize the budget based on cost, usage, savings plans, and reservations. Now, we will see step-by-step hands-on guide on how to create a cost budget.

1. Sign in to the AWS Management Console and open the AWS Cost Management console at https://console.aws.amazon.com/cost-management/home.In the navigation pane, choose Create Budgets.

2.Under Budget setup, choose Customize (advanced).

3.Under Budget types, choose Cost budget.Then, click Next.

4.Under Details, for Budget name, you need to enter the name of your budget. Remember your budget name must be unique.

5.In the ‘Set budget amount’ section, choose how often you want the budget to reset the actual and forecasted spend. In my case, I selected the monthly option.

under Budget renewal type, I selected Recurring budget option.

📌Recurring budget: renew on the first day of every monthly billing period.

📌Expiring budget: Expiring monthly budgets stop renewing at the end of the selected expiration month.

6.For Budgeting method, select the way that you want your budget amount to be determined each budget period. and enter your budgeted amount.

7.under “Budget scope” — either selecting all AWS services or filter specific AWS cost dimensions option where you can filter specific services.

8.In the ‘Set alert threshold’ section, for the Threshold, enter the amount that, once reached, will trigger a notification. You can enter either an exact value or a percentage like below screenshot.

When your actual cost is greater than 50.00% ($2.50) of your budgeted amount ($5.00), the alert threshold will be exceeded.

9.Enter the email addresses that you want the alert to notify.

10.Review your budget settings, and then choose Create budget.

Now, Budget has been successfully created.

By following these detailed steps, you can successfully set up an AWS budget, allowing you to manage and control your AWS spending effectively.

🌟Happy Learning!!🌟