Skip to content

AWS Budget Setup Guide

Overview

AWS Budgets provides cost tracking and alerts to prevent unexpected charges. Set up budgets immediately after creating an AWS account.

Creating a Monthly Cost Budget

  • AWS Console → Billing → Budgets → Create Budget
  • Use the simplified template: Monthly cost budget
  • Set a reasonable budget amount based on expected usage
  • Add email recipients for alert notifications

After creating the budget, configure two alerts:

AlertThresholdType
Warning80% of budgeted amountActual cost
Critical100% of budgeted amountActual cost

Delete any automatically created alerts beyond these two.

Cost Monitoring Tips

  • Review the budget dashboard monthly
  • Use AWS Cost Explorer for detailed breakdowns by service
  • Consider per-service budgets for granular tracking in production
  • Set up AWS Free Tier usage alerts separately

Common Cost Drivers

For a typical Superloom serverless project:

ServiceCost Factor
LambdaInvocation count and duration
DynamoDBRead/write capacity and storage
S3Storage volume and request count
CloudFrontData transfer and requests
RDSInstance hours and storage

Most sandbox environments should cost under $30/month with moderate usage.

Released under the MIT License.