02 - EC2 Fundamentals

AWS Budget Setup

awsbillingbudgetcost-managementsaa-c03

Enabling Billing Access for IAM Users

By default, IAM users cannot access billing data even with AdministratorAccess.

Steps to Enable (Root Account Required)

  1. Login as Root User (not IAM user)
  2. Click account name → Account
  3. Scroll to IAM user and role access to Billing information
  4. Click Edit → Activate IAM Access
  5. Save changes
Root Account Settings
└── Account
    └── IAM user and role access to Billing information
        └── Activate IAM Access ✓
Root Account Only

This setting can only be changed by the root user, not by IAM administrators.

Billing Dashboard

Access: Account Menu → Billing and Cost Management

Key Information Available

Section Information
Home Month-to-date cost, Forecasted cost, Last month total
Bills Detailed breakdown by service and region
Free Tier Current usage vs limits, Forecast alerts
Budgets Custom spending alerts

Bills Breakdown

Navigate: Bills → Select Month → Charges by Service

Bills
└── December 2023
    └── Charges by Service
        ├── EC2 (EU Ireland): $43
        │   ├── NAT Gateway: $35
        │   ├── EBS: $5
        │   └── Elastic IP: $3
        ├── S3: $2
        └── Lambda: $0.50

Free Tier Dashboard

Shows usage against free tier limits:

Service Free Tier Limit Your Usage Status
EC2 t2.micro 750 hours/month 200 hours ✅ Green
S3 Storage 5 GB 3 GB ✅ Green
Lambda 1M requests 1.2M 🔴 Red (Over)
Monitor Regularly

If forecast shows red, you will be billed. Turn off unused resources immediately.

Creating Budgets

Zero-Spend Budget

Alerts when you spend even $0.01.

Steps:

  1. Budgets → Create Budget
  2. Template: Zero spend budget
  3. Name: My Zero Spend Budget
  4. Email: your-email@example.com
  5. Create Budget

Monthly Cost Budget

Set a spending limit with multiple alerts.

Steps:

  1. Budgets → Create Budget
  2. Template: Monthly cost budget
  3. Budget amount: $10
  4. Email: your-email@example.com
  5. Create Budget

Default Alerts:

  • 85% of budget reached (actual)
  • 100% of budget reached (actual)
  • 100% of budget forecasted
Budget: $10/month
├── Alert 1: $8.50 actual spend (85%)
├── Alert 2: $10.00 actual spend (100%)
└── Alert 3: $10.00 forecasted (100%)

Monthly cost budget and its default alerts

$0 Alert 1 $8.50 actual (85%) Alerts 2 and 3 $10 actual (100%) $10 forecasted (100%)
A $10 budget sends one alert at 85% of actual spend, one at 100% of actual spend and one when the forecast reaches 100%.

Best Practices

Course Cost Management
  • Set up Zero-Spend Budget immediately
  • Set Monthly Budget to $10 as safety net
  • Check Free Tier dashboard regularly
  • Review Bills if unexpected charges appear
  • Delete resources after hands-on exercises

Questions & Answers

Q1: Why can't my IAM admin user see billing data?

Answer:

By default, billing access is disabled for IAM users. The root account must enable "IAM user and role access to Billing information" in Account settings. Even AdministratorAccess policy doesn't grant billing access without this setting.

Q2: How do I find which service is costing me money?

Answer:

Go to Billing → Bills → Select Month → Charges by Service. Expand each service to see regional breakdown and specific charges (e.g., NAT Gateway, EBS volumes, Elastic IPs).

Check yourself

Quiz

Flashcards

Click the card (or focus it), then use ← → to move and Space to flip.