(Tutorial: Setting up an AWS Budget Alarm for peace of mind)
Dreaming of becoming an AWS Community Builder is a big goal. But let's be honest, there is one thing that often stops beginners from diving deep into AWS: The Fear of the Bill.
We have all heard the horror stories of developers forgetting to turn off an EC2 instance, only to wake up to a massive invoice at the end of the month. For those of us just starting out with limited funds, this risk can lead to serious overthinking.
But relax, the solution exists and it is actually very simple.
My first step in this journey isn't diving into complex coding immediately, but building a Safety Net first.
In this post, I want to share how to set up an AWS Budget Alarm. It is a basic feature, but the impact is crucial. The goal is simple: Get a notification if our balance is used, even if it’s just $0.01.
The best news? This method is FREE. Let’s get into the steps! 👇
Step 1: Access the "Budgets" Menu
First, log in to your AWS Console. Don’t get overwhelmed by the hundreds of services available; just go to the search bar at the top and type "Budgets".

Click on the menu to enter the Billing dashboard.
Step 2: Create a New Budget
Click the orange "Create budget" button.
Here, select the "Customize (advanced)" option. Why? So we have full control over the settings.
Then, select "Cost budget" and click Next.
Step 3: Set the Amount ($0.01)
This is the most important part. In the budget settings menu, fill it in like this:
- Period: Select Monthly.
- Budget renewal type: Select Recurring (repeats every month).
- Budget method: Select Fixed.
- Enter your budgeted amount: Enter $0.01.
"Why $0.01? Why not just $0.00?"
AWS does not allow us to enter a flat zero ($0.00). So, we set it to the smallest possible amount: 1 cent.
The logic is simple: If this alarm goes off, it means we have accidentally used a paid service outside of the Free Tier. Think of it as an "early warning system" for your wallet.
Step 4: Set the Notification (Alert)
Click "Add an alert threshold".
- In the Threshold section, enter 80% or 100%.
- Enter your Email Address in the Email recipients field.
Click Next, review everything briefly to make sure it's correct, then click Create budget.
Step 5: Done! Safe and Sound
Now you will see your budget status on the dashboard is green ("OK"). That means your safety net is active.
Why is this "High Impact"?
It might seem trivial—just setting up an alarm. But to me, this demonstrates the right Cloud Engineer mindset: Cost Awareness & Governance.
With this safeguard in place, now I (and you) can freely explore other AWS services like Lambda, S3, or DynamoDB anxiety-free. If there is a misconfiguration, a notification will land in my email immediately, and I can take action before the bill piles up.
So, that’s my first step! Next, I plan to build a simple serverless project that is definitely still $0. Stay tuned for the next post! 👋






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