How to Setup Budget in AWS to Keep your Bill in Check

How to Setup Budget in AWS to Keep your Bill in Check
Sharing is Caring:

Dear Reader, I hope you are doing great. Today, I am here to show you, how you can setup a budget in AWS so that you can keep your account billing in check.

To be honest, AWS billing can be really confusing at times and not everything is free in the so called “Free tier“. As a result, you might end up spending few bucks while experimenting.

To ensure that, this few buck stays in limit and you don’t end up spending fortune, I am here with this post.

Okay?

Alright, Let’s dive a beet deeper into why you should setup budget in your AWS account.

Why Should You Setup Budget in AWS?

Well, Let me tell you a short story of days, when I was a beginner in AWS cloud.

I still remember the instance, when I started experimenting with AWS. Obviously a virtual server or EC2 was one of the first service I played with. Then, I created an elastic IP, attached to my EC2 instance , did some experiment and terminated the instance.

All well till now.

Suddenly, after few days I logged into my AWS account only to find out, I have been charged few dollars for the unused elastic IP.

Had I known this earlier, I could have saved myself few cup of coffees 😛

AWS Budget allows you to receive alerts as soon as your specified amount is spent in your account. You might want to set it up to a really low value such as $0.01 or so, to avoid being charged at all(You can’t set it to 0)

That’s why, I always recommend you to setup a budget while setting your free tier account.

Steps to Setup Budget in AWS

  • Login to AWS Management Console
  • Navigate to Billing Dashboard
  • Create a Budget

Let’s get started.

Login to AWS Management Console

Login to your AWS account using AWS Management Console. You can either login as root user or an IAM user which has billing access.

Please note that, by default an IAM user doesn’t have access to Billing dashboard even if they are administrator. However, the account owner(Root) can give Billing Access to an IAM user.

Therefore, if you get access denied message, login using root user to create the budget. Or even better that provide your IAM user access to billing console. Because, it makes sense for you to know your spent while you are logged in as IAM user to design a cost effective solution

Navigate to Billing Dashboard

Once you are logged into your account, Click on your account name and then Click My Billing Dashboard as shown in below screenshot.

How to Setup Budget in AWS to Keep your Bill in Check 1

You will be navigated to billing console which looks something like below.

How to Setup Budget in AWS to Keep your Bill in Check 2

Click on Budgets from left hand side navigational menu and you should be navigated to budget console

Create a Budget

Once you are in Budget console, Click on Create a budget as shown below

How to Setup Budget in AWS to Keep your Bill in Check 3

Choose Budget Type

You will be navigated to billing console which looks something like below.

Click on Budgets from left hand side navigational menu and you should be navigated to budget console

Create a Budget

Once you are in Budget console, Click on Create a budget as shown below

Choose Budget Type

We are creating this budget to monitor cost and receive alert in case threshold is breached. So choose budget type as Cost budget.

How to Setup Budget in AWS to Keep your Bill in Check 4

Click Next

Set budget amount

Once you click next, you are on a page where you need to put details such as:

  • Period- monthly, quarterly etc.
  • Budget effective date – recurring or expiring
  • Start month
  • Enter your budgeted amount ($)
  • Budget name
How to Setup Budget in AWS to Keep your Bill in Check 5

I am providing 1 in the budget amount as I don’t want to spend more then 1 dollar. You can set this amount as per your need. It should be greater than 0 but can be as less as 0.01

Keep the scope to default as selected

How to Setup Budget in AWS to Keep your Bill in Check 6

Once you provide all the above info, click Next

On this page, cross check the budget amount and click on Add an alert threshold as shown below.

How to Setup Budget in AWS to Keep your Bill in Check 7

While adding alert, you can either configure the alert trigger to alert you on forecasted cost or actual cost. You can even create more then one alert threshold. For this tutorial I am just selecting the actual cost as you can see below.

The final step is to provide your email address where you would like to receive the alerts.

How to Setup Budget in AWS to Keep your Bill in Check 8

Once provided, click Next

In attach action, we are not attaching any actions as of now As all we want is to receive an email alert when the threshold is breached.

Review the details in the review screen and click Create budget

This image has an empty alt attribute; its file name is image-10-1024x551.png

And, there you go !!!

Your budget is created successfully.

This image has an empty alt attribute; its file name is image-11-1024x395.png

Now, you can sleep peacefully. As soon as the threshold is breached, you are gonna receive alert and you can take action as per that.

Conclusion

While, doing hands on experiments on your free tier AWS account is one of the best things that you can do to enhance your AWS knowledge. Keeping check of bills is another important thing.

In this post, we learnt to setup budget in AWS account so that you don’t overspend. As soon as your set threshold is met, you will get an email notification so that you can take instant actions.

I hope this post was useful to you. In case of any issue please add in comment section . I would love to resolve your issue.

Enjoyed the content?

Subscribe to our newsletter below to get awesome AWS learning materials delivered straight to your inbox.

You can motivate me and help me get better by –

Please share your feedback and help us get better with time 🙂

Suggested Read:

Sharing is Caring:

One thought on “How to Setup Budget in AWS to Keep your Bill in Check

Leave a Reply

Your email address will not be published. Required fields are marked *