How to Create & Set Monthly Budget Limit (Threshold) in AWS | Overview & Hands-On.

An Overview & Hands-On How to Create & Set Monthly Budget Limit (Threshold) in AWS

Focus:

• Tailored for SRE, DevOps, Cloud, and DevSecOps Engineers

Breakdown:

• Intro,
• AWS built-in service,
• Alternatively way to Create & Set Monthly Budget Limit (Threshold) in AWS,
• Hands-On.

Intro:

• To set a budget, twtech typically need to use a dedicated platform, app, or service. 

Here are common methods:

AWS built-in service

• Creates and set a monthly budget limit in AWS.
•  twtech uses this AWS built-in Budgets tracking service to track usage and costs.

Financial Apps: 

• Use popular budgeting apps like YNAB (twtech Need A Budget), Mint, or PocketGuard which guide it through categorizing expenses and setting limits.

Bank Accounts:

•  Many major banks and credit unions offer built-in budgeting tools within their online banking portals or mobile apps. 
• Log in to twtech bank's website or app to access these features.

Spreadsheets:

•  Create a custom budget using a program like Google Sheets or Microsoft Excel, where twtech manually track income and expenses.

NB:

• To create and set a monthly budget limit, twtech can use the aws console and a variety of financial tools.
• Common methods include utilizing the aws console, dedicated budgeting apps, personal finance software, or the built-in features of twtech bank's website or mobile app .

Alternatively way to Create & Set Monthly Budget Limit (Threshold) in AWS

Using a Budgeting App or Software

Many popular budgeting apps allow twtech to easily create and manage monthly spending limits.

• Download a reputable budgeting app (e.g., twtech Needs a Budget app (YNAB), Mint, or PocketGuard) from its device's app store.
• Connect twtech bank accounts and credit cards securely to the app.
•  This allows the software to automatically categorize its transactions.
• Navigate to the "Budgets" or "Spending Limits" section within the app.
• Set a monthly limit for various categories such as groceries, dining out, entertainment, and transportation. 
• Most apps provide visual trackers and alerts to help twtech to stay within its limits.

Using twtech Bank's App or Website

Most major banks offer personal finance management tools within their online platforms.

• Log in to twtech online banking portal or mobile app.
• Look for features like "Spending Analysis," "Budgeting Tools," or "Set Limits" in the main menu or dashboard.
• Define the categories and the maximum amount twtech wishes to spend per month in each.

Manual Method (Spreadsheets)

• For a hands-on approach, twtech can create a budget using a spreadsheet (like Google Sheets or Microsoft Excel).
• List twtech total monthly income.
• Itemize all twtech fixed expenses (rent/mortgage, utilities, car payment, etc.).

• Allocate twtech remaining income to variable expenses (groceries, leisure, savings). This method requires twtech to manually track and update its spending.
• By utilizing one of these approach, twteh can effectively monitor its spending and ensure it stay within its desired monthly limits.

Project: Hands-On

• How twtech creates and set a monthly budget limit in AWS, twtech with an AWS built-in service that helps track usage and costs.

Here’s how twtech sets a monthly budget step-by-step:

 Step-by-Step: Create a Monthly Budget in AWS

1. Sign in to AWS Console (IAM-user need to be granted access by root user to the billing console)
• Go to: https://console.aws.amazon.com/billing/home#/budgets
2. Click on “Create budget”
3. Select Budget Type
• Choose Cost budget.
• Click Next.
4. Set Budget Details
• Name: Give twtech budget a descriptive name (e.g., Monthly-DevOps-Budget)
• Period: Choose Monthly
• Budget renewal type: Choose Recurring budget
• Start month: Select when to start the budget
5. Set Budget Amount
• Budgeting method: Choose Fixed
• Enter the budgeted amount, e.g., $300
6. Configure Alerts (Highly Recommended)
• Set up email alerts to notify you when:
• Actual cost exceeds a threshold (e.g., 80% of budget)
• Forecasted cost is expected to exceed your limit
• Add email recipients (use twtech email or a distribution email list)
7. (Optional) Set Filters
• twtech can filter by service (e.g., EC2, S3), linked account, tag, etc.
8. Review and Create
• Double-check all settings
• Click Create budget

Explanation

• If twtech want to ensure its monthly cloud spendings stay under $300, it creates a budget named MonthlyBudget300, set the amount to $300, and set up an email alert for when usage hits 80% ($240) and 100% ($300).

 Tips

• AWS Budgets does not stop usage, it only alerts.
• If twtech wants to automatically restrict usage, consider using AWS Service Quotas, Organizations SCPs, or custom automation via Lambda + Budgets Actions (advanced).
• twtech also uses Budgets Actions to trigger things like IAM policies or notifications to Slack when thresholds are hit.

Project: Hands-On

• How twtech IAM-user sets a budget-limit in aws with a bulit-in Service. 
• twtech does not want to spend too much money on services without notice.
•  twtech root user (pat.a.foncha) must grant billing and cost management access to IAM-user twtech-pat-v3

Step-1:

Go to twtech root account (pat.a.foncha), then click on account to grant needed Permissions to FinOps Team.

NB:

• User must login with root account to access Billing data and grant Permissions to twtech-FinOps Team.

Step-2:

• Activate IAM user and role access to Billing information.

From

To:

• Update IAM user and role access to Billing information.
• This allows IAM-user to access billing information.

Step-3:

From another browser, Login as IAM-user (twtech-pat-v3) to verify that IAM-user (twtech-pat-v3) , head of twtechFinOps Team can now access and manage Billing information.

https://twtech-pat-v3.signin.aws.amazon.com/console

• Got to IAM-user account (twtech-pat-v3), then navigate to billing and cost management console to see whether user now has access.

• Yes. IAM-user, (twtech-pat-v3) head if twtech-FinOps Team has been granted just needed access by root user to manage the  billing and cost console

• How twtech-FinOps Team views the breakdown of monthly costs for services in aws.

• Cost breakdown by services.

Free tier usage. 

• If free tier forecasted usage turns red, the service would be charged. 
• Make sure the unwanted services are monitored and possibly  turn-off to reduce costs.

Step-4:

• twtech-FinOps Team sets a zero spent budget limit to aws services. (This makes sure no money is spent)

Click on:  Budgets

• FinOps Team create a budget.

Step-4:

• FinOps Team Assign a name & email for the zero budge template: 
• Use distribution (FinOps Team email) to notify all members of the twtech-FinOps Team. 

• Create the budget

• Example of email notification that zero budget alert has exceeded limit. (>$1. has been spent) 

• How twtech IAM user Creates a monthly budget that alerts whenever users reach the set limit (threshold)

• Secify the budget limit and contact email.

NB:

• The monthly budget can be edited or deleted,