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How to Set Up and Manage an AWS Budget for a Free Tier Account

AWS Budget

Creating a budget in AWS allows you to set cost and usage thresholds and receive alerts when those thresholds are exceeded. Here's how you can create a budget in AWS:

1.Sign in to the AWS Management Console: Go to the AWS Management Console at

2.Navigate to the Budgets Dashboard: In the AWS Management Console, navigate to the "Billing & Cost Management" section. You can find this by searching for "Billing" in the AWS services search bar or by selecting it from the services menu. Once in the Billing & Cost Management dashboard, select "Budgets" from the left-hand navigation pane.


3.Create a Budget: In the Budgets dashboard, click on the "Create budget" button.


4.Choose Budget Type: Select the type of budget you want to create. You can choose between Cost Budget or Usage Budget. Cost budgets allow you to set thresholds based on cost, while Usage budgets allow you to set thresholds based on usage.


5.Define Budget Details: Fill in the details for your budget, including the budget name, budget period (monthly, quarterly, or annually), budgeted amount, and optional filters (such as specific services, regions, or tags).


6.Set Alerts: Configure alert thresholds for your budget. You can set alerts for when actual costs or usage exceed a certain percentage of the budgeted amount.


7.Configure Additional Options: Optionally, you can configure additional options such as linking the budget to a specific payer account, setting up email notifications for budget alerts, and setting up actions for when budget thresholds are exceeded.

8.Review and Create: Review your budget details and settings, and then click on the "Create budget" button to create your budget.


Once your budget is created, AWS will monitor your cost and usage against the defined thresholds, and you will receive alerts via email when those thresholds are exceeded. You can also view your budgets and budget alerts in the Budgets dashboard in the AWS Management Console.


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