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Setting Up Budget Alerts and Controls - Day 57

Hello readers! Welcome back to our #100DaysOfAWS series. Today, we're going to discuss more on cost management, picking up from where we left off on Day 56, where we explored AWS Budgets. If you missed that, don't worry; we're about to dive into the next crucial step: setting up budget alerts and controls.


Understanding AWS Budgets

In our last blog, we discussed about AWS Budgets, the financial compass that keeps you on track by setting spending thresholds for your AWS resources. It's like having a monthly budget for your cloud adventures, making sure you don't overspend.


Why Set Up Alerts and Controls?

Now, let's talk about the nifty companions to your budgets: alerts and controls. Imagine your AWS Budget as a guide, and these are your guardians, ensuring you stay on the right financial path. Here's why they're crucial:

  1. Timely Warnings: Alerts notify you when you're getting close to or exceeding your budgeted amount. It's like a friendly tap on the shoulder, saying, "Hey, you're approaching your spending limit!"

  2. Preventing Overspending: Controls kick in to prevent you from going overboard. They act as the gatekeepers, putting a stop to any activity that might push you beyond your defined budget.


Setting Up Alerts: A Practical Guide

Let's get hands-on. Say you've set up a budget for your EC2 instances, planning to spend no more than $500 this month. Now, you want to be alerted when you hit 80% of that amount. Here's how:

  1. Go to AWS Budgets Dashboard: Navigate to the AWS Management Console and find the Budgets service.

  2. Select Your Budget: Choose the budget you want to set an alert for. In our case, it's the EC2 budget.

  3. Define Your Alert Threshold: Specify the threshold. For instance, set it at 80% of your budgeted amount.

  4. Set Up Alert Recipients: Decide who should receive these alerts. It could be your email, an SNS topic, or even both.

  5. Save and Activate: Confirm your settings and activate the alert. Now, when your EC2 spending hits 80% of the budgeted $500, you'll get a heads-up.


Implementing Controls

Alright, now let's add some controls to the mix. You've set an alert for your EC2 budget, but what if someone tries to launch additional instances that could push you over the edge? Controls ensure that doesn't happen.

  1. Go to AWS Identity and Access Management (IAM): Head to IAM in the AWS Console.

  2. Create a New Policy: Craft a policy that denies the ability to launch new EC2 instances if the budget is surpassed.

  3. Attach Policy to User or Role: Assign this policy to the user or role responsible for EC2 activities.

  4. Test Your Control: Try launching a new EC2 instance. If it exceeds the budget, your control will kick in, preventing the action.


Let's bring this home with a real-world scenario. Imagine you're running a web application on AWS, and your monthly budget is $1,000. Now, you've set an alert at 80% ($800). This way, you get notified well before hitting the limit.


One day, a spike in traffic prompts someone to think, "Let's launch more instances to handle the load." Without controls, this could lead to overshooting the budget. However, with controls in place, attempting to launch additional instances beyond the budget threshold triggers a denial, ensuring your finances stay intact.


As we wrap up Day 57, you've not only set up budgets but also armed yourself with alerts and controls, turning your AWS Console into a financial command center. These tools ensure you not only have a budget but also stay within it, even when the unexpected happens.


Stay tuned for more practical insights and hands-on guides in the upcoming days of our #100DaysOfAWS series.


Thank you for reading!


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