Exercise: Setting up an Azure budget

Natasha Ong
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4 min read

Exercise Overview:

In this exercise, you will:

  • Create your first budget.
  • Set up budget alerts.

Task 0: Heading to Budgets in the Azure Portal

  1. In the Azure portal, head to Subscriptions, select a subscription from the list, and then select Budgets in the menu.

Here's what your page should look like:

Task 1: Your first Azure Budget

1. Select Add.

Wondering what are filters? Filters let you narrow down what you want to budget for. For example, you can make a budget for resource groups in a subscription or a service like virtual machines. You can apply any filter you can use in cost analysis to a budget.

2. Enter a budget name (e.g. mymonthlybudget), then select a monthly, quarterly, or annual budget reset period. In this case, select monthly.

Wondering what's a reset period? A reset period determines the time window that the budget looks into. At the beginning of each period, the costs tracked by the budget start again from zero.

3. Next, select the expiration date i.e. when the budget stops evaluating your costs. Let's make it one year from today.

4. Let's set the budget amount (in $), for example, $300. If you want to make sure you don't get charged at all in Azure, change this to $0.01!

5. Select Next.

Task 2: Configure actual costs budget alerts

Now let's configure alerts so you get notified if you're getting close to hitting your budget. Every budget needs at least one cost threshold. Think of cost thresholds as milestones in your costs. If you set a cost threshold at 90%, it means you get alerted when your costs have hit 90% of the budgeted amount. Azure will send you an email in less than eight hours of a cost threshold being met.

1. Set an alert condition when 90% of the budget is reached.

2. Set-up the email recipient(s).

Task 3: Configure forecasted budget alerts

Forecasted alerts help you know in advance if you're about to spend more than planned. These alerts use predictions to estimate your future costs.

1. Add a new alert condition, this time changing the Type to Forecasted.

2. Click Create and wait for Azure to validate your settings to get your budget ready.

3. Here's what your budget should look like in your portal when it's all done:

Congrats on your first Azure budget!

  • This will give you an alert if you exceed the allowed budget (hopefully that won't be the case 🤞🏼).
  • You can set up more budget and alerts as you deploy more services in the Azure.