Guide to Setting Up AWS Budgets and Alerts

In this article, we’ll explore why budgets are crucial for managing your AWS expenses and walk you through the steps to create a simple budget using the AWS console.

Why Budgets Matter

AWS budgets play a pivotal role in helping you monitor your AWS spending effectively and receive timely alerts when your spending approaches or exceeds your predefined limits. They serve as proactive tools that enable customers to track and manage their AWS billing, ultimately helping you avoid unexpected charges in your AWS accounts, whether for your company or personal use.

How to Set Up AWS Budgets

Setting up AWS budgets is a straightforward process that empowers you to take control of your AWS spending. Let’s dive into the steps:

1. Access AWS Billing and Cost Management

To create a budget in AWS, you’ll need to access the AWS Billing and Cost Management console with an IAM (Identity and Access Management) user who has the necessary permissions. Follow these steps:

  • Sign in to your AWS Management Console.
  • Use the search bar to find “Budgets” and select it from the results.

2. Create a Budget

Once you’re in the Budgets section, click on “Create a budget.” You’ll be presented with a budget setup wizard.

3. Choose Budget Type

There are several types of budgets to choose from, including:

  • Cost Budget: This is the most common type and is based on a specified dollar value.
  • Savings Plans and Reservation Budgets: For customers using savings plans and reservations.
  • Usage Budget: If you want to create a budget based on non-monetary factors, like the amount of data stored in a particular AWS service.

4. Define Budget Period

Determine the budget period, with “Monthly” being a common choice. This aligns with the billing frequency from AWS, which is typically monthly.

5. Set Budget Amount

Specify the amount you want to set your budget for. For example, you can choose a fixed monthly budget of $50 or customize it according to your needs.

6. Set Budget Threshold

To receive proactive email alerts as you approach your budget, set a threshold. For example, if your budget is $50, you might set the threshold at 50%. This means you’ll be alerted when your spending reaches $25.

7. Provide Email Notifications

Enter the email address or distribution list where you’d like to receive notifications if your spending exceeds the budget threshold.

8. Review and Create

Review your budget details, including the name, period, amount, and threshold. Once you’re satisfied, create the budget.

9. Monitor Your Budget

After creating your budget, you can monitor it by accessing the budget overview, which provides graphical representation and insights into your budget’s status.

10. Set Up Budget Reports (Optional)

If you want to receive proactive email reports about your budget on a weekly, daily, or monthly basis, you can configure budget reports to be sent to your specified email address.

11. Create a Zero Spend Budget (Optional)

Consider creating a zero spend budget if you want to be alerted when you exceed the AWS free tier limits, ensuring you don’t incur any charges. This is especially useful for individuals or self-study within AWS.


In conclusion, AWS budgets are essential tools for managing your AWS expenses effectively and avoiding surprises on your AWS bill. By following the steps outlined in this guide, you can create budgets that align with your spending goals, set thresholds for timely alerts, and receive regular reports to monitor your AWS usage.

Thank you for joining us on this journey to understand AWS budgets and alerts better. If you have any feedback or further questions, please don’t hesitate to reach out

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