Create Cost Budget

Overview

In this section, you will practice creating a Cost Budget - an important tool that helps you monitor and control your AWS costs.

Initialize Cost Budget

ℹ️ Information: New AWS accounts can only create Cost Budget initially, other budget types may not be available immediately.

1. Log in to AWS Management Console and find Billing and Cost Management service in the search bar.

2. On the management page, select Budgets from the left menu. Click the Create budget button.

Set up Budget Configuration

3. In the Budget setup section:
   • Select Customize
   • Under Budget types, select Cost budget
   • Click Next

4. In the Set your budget interface:
   • Under Budget name, enter Monthly

• Period: Choose the time period for Budget:

  • Daily
  • Monthly
  • Quarterly
  • Annually

• Budget effective dates:

  • Recurring Budget: If you want the Budget to repeat periodically
  • Expiring Budget: If you want the Budget to apply only once

  💡 Pro Tip: All time zones in AWS Budget use UTC standard.

• Specify your monthly budget:

  • Fixed: If you want the budget for each period to be the same
  • Monthly Budget Planning: If you want to set different budgets for each month
  • Budgeted amount: Enter the amount corresponding to your budget

5. In the Budget scope section, select All AWS services to apply budget to all AWS services. Under Aggregate costs by, select Unblended costs. Then click Next.

Set up Alerts

6. Select Add an alert threshold to set alert thresholds.

7. Configure detailed settings for Alert and select Next.

8. Review action settings (if any) and select Next.

9. Review all configurations and select Create budget to complete.

10. Confirm Budget has been created successfully.

Benefits of Cost Budget

ℹ️ Information: Cost Budget helps you monitor AWS costs in real-time and receive alerts when costs exceed set thresholds.

💡 Pro Tip: It’s recommended to set multiple alert thresholds (e.g., 50%, 80%, 100%) to be proactive in cost control.

🔒 Security Note: Ensure alert notifications are sent to responsible and authorized personnel who can take timely action when costs exceed thresholds.