Setting up billing alerts in AWS - Step-by-Step CLI Walkthrough

Introduction

Sometimes your cloud costs can grow unexpectedly. Setting up billing alerts helps you get notified when your spending reaches certain limits so you can avoid surprises.

When you want to be notified if your monthly AWS bill exceeds a certain amount.

When you manage multiple AWS accounts and want to track spending per account.

When you want to control costs by receiving alerts before charges get too high.

When you want to automate cost monitoring without checking the AWS console daily.

When you want to receive email notifications about your AWS billing status.

Commands

This command creates a budget in AWS using the details defined in the budget.json file. It sets the spending limit and alert thresholds.

Terminal

aws budgets create-budget --account-id 123456789012 --budget file://budget.json

Expected Output

{"Budget":{"BudgetName":"MyMonthlyBudget","BudgetLimit":{"Amount":"100","Unit":"USD"},"TimeUnit":"MONTHLY","BudgetType":"COST"},"ResponseMetadata":{"RequestId":"abcd1234-5678-90ef-ghij-klmnopqrstuv","HTTPStatusCode":200}}

→

--account-id - Specifies the AWS account ID where the budget is created

→

--budget - Points to the JSON file that defines the budget details

Creates an SNS topic named BillingAlerts to send notifications when budget thresholds are reached.

Terminal

aws sns create-topic --name BillingAlerts

Expected Output

{"TopicArn":"arn:aws:sns:us-east-1:123456789012:BillingAlerts"}

→

--name - Sets the name of the SNS topic

Subscribes your email to the SNS topic so you receive alert emails when the budget threshold is crossed.

Terminal

aws sns subscribe --topic-arn arn:aws:sns:us-east-1:123456789012:BillingAlerts --protocol email --notification-endpoint [e-mail]

Expected Output

{"SubscriptionArn":"pending confirmation"}

→

--topic-arn - Specifies the SNS topic to subscribe to

→

--protocol - Defines the communication method, here email

→

--notification-endpoint - The email address to receive notifications

Links the budget with the notification and subscribers so alerts are sent when spending reaches the set limit.

Terminal

aws budgets create-notification --account-id 123456789012 --budget-name MyMonthlyBudget --notification file://notification.json --subscribers file://subscribers.json

Expected Output

{"ResponseMetadata":{"RequestId":"efgh5678-1234-90ab-cdef-ghijklmnopqr","HTTPStatusCode":200}}

→

--account-id - AWS account ID where the budget exists

→

--budget-name - Name of the budget to attach the notification

→

--notification - JSON file defining the alert threshold and type

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--subscribers - JSON file listing who receives the alert

Key Concept

If you remember nothing else from this pattern, remember: setting a budget with notifications and subscribing an email lets you get cost alerts automatically.

Common Mistakes

Not confirming the email subscription to the SNS topic

Without confirmation, you won't receive any alert emails.

Check your email inbox and click the confirmation link to activate the subscription.

Using incorrect JSON format in budget or notification files

AWS commands will fail or create invalid budgets without proper JSON structure.

Validate JSON files with a linter before running commands.

Not specifying the correct AWS account ID

Budgets and notifications won't be created in the intended account.

Double-check the account ID matches your AWS environment.

Summary

Create a budget with a spending limit using a JSON file and AWS CLI.

Create an SNS topic and subscribe your email to receive alerts.

Link the budget with notifications and subscribers to trigger alerts automatically.

Practice

1. What is the primary purpose of setting up billing alerts in AWS?

easy

A. To disable services when spending is high

B. To automatically increase your cloud budget

C. To get notified when your cloud spending reaches a certain limit

D. To get detailed logs of all service usage

Solution

1. Step 1: Understand billing alerts purpose

   Billing alerts notify you when your spending reaches a set threshold to help control costs.

2. Step 2: Compare options

   Only To get notified when your cloud spending reaches a certain limit describes notification on spending limits; others describe unrelated actions.

3. Final Answer:

   To get notified when your cloud spending reaches a certain limit -> Option C

4. Quick Check:

   Billing alerts = notifications on spending [OK]

Hint: Billing alerts notify you about spending limits reached [OK]

Common Mistakes:

• Thinking alerts automatically change budgets
• Confusing alerts with service shutdown
• Assuming alerts provide detailed usage logs

2. Which AWS service is used to create billing alerts easily?

easy

A. Amazon S3

B. AWS CloudTrail

C. AWS Lambda

D. AWS Budgets

Solution

1. Step 1: Identify service for billing alerts

   AWS Budgets is designed to create budgets and alerts for billing thresholds.

2. Step 2: Eliminate unrelated services

   CloudTrail tracks API calls, Lambda runs code, S3 stores data; none create billing alerts.

3. Final Answer:

   AWS Budgets -> Option D

4. Quick Check:

   AWS Budgets = billing alerts service [OK]

Hint: Use AWS Budgets to set billing alerts quickly [OK]

Common Mistakes:

• Choosing CloudTrail for billing alerts
• Confusing Lambda with alert setup
• Selecting S3 as billing alert tool

3. Given this AWS Budgets alert setup:
Threshold: 80% of $1000 budget
Notification: Email to [e-mail]
What triggers the alert?

medium

A. When spending reaches $800

B. When spending reaches $1000

C. When spending reaches $200

D. When spending reaches $1200

Solution

1. Step 1: Calculate 80% of $1000 budget

   80% of $1000 = 0.8 x 1000 = $800.

2. Step 2: Understand alert trigger

   The alert triggers when spending reaches $800, the threshold set.

3. Final Answer:

   When spending reaches $800 -> Option A

4. Quick Check:

   80% x 1000 = 800 [OK]

Hint: Multiply budget by threshold percent to find alert trigger [OK]

Common Mistakes:

• Using full budget amount instead of threshold
• Confusing 80% with 20%
• Choosing amounts above budget

4. You set a billing alert but never receive notifications. What is a likely cause?

medium

A. Your AWS account has no budget set

B. You did not verify the email address for notifications

C. Billing alerts only work with SMS, not email

D. Alerts only trigger after spending exceeds twice the budget

Solution

1. Step 1: Check notification setup requirements

   AWS requires email addresses to be verified before sending alerts.

2. Step 2: Evaluate other options

   A budget is required to create alerts; alerts support email notifications; alerts trigger when spending reaches the threshold, not after twice the budget.

3. Final Answer:

   You did not verify the email address for notifications -> Option B

4. Quick Check:

   Email verification needed for alerts [OK]

Hint: Verify email to receive AWS billing alerts [OK]

Common Mistakes:

• Assuming alerts work without email verification
• Thinking alerts only support SMS
• Believing alerts trigger only after double spending

5. You want to set a billing alert that notifies you by email when your AWS spending exceeds $500 and again at $750. How can you configure this using AWS Budgets?

hard

A. Create one budget with two notification thresholds: 50% and 75% of $1000 budget

B. Create two separate budgets each with one notification at $500 and $750

C. Create one budget with a single notification at $625 (average of $500 and $750)

D. Create one budget with a notification only at $750 and manually check for $500

Solution

1. Step 1: Understand AWS Budgets notification capabilities

   AWS Budgets allows multiple notification thresholds per budget.

2. Step 2: Apply thresholds to a single budget

   Set budget at $1000 with notifications at 50% ($500) and 75% ($750) to get alerts at both amounts.

3. Step 3: Evaluate other options

   Creating two budgets is unnecessary; a single notification at the average misses the exact alert points; manual checking is inefficient.

4. Final Answer:

   Create one budget with two notification thresholds: 50% and 75% of $1000 budget -> Option A

5. Quick Check:

   Multiple notifications per budget = correct setup [OK]

Hint: Use multiple thresholds in one budget for several alerts [OK]

Common Mistakes:

• Creating multiple budgets instead of multiple notifications
• Using average threshold instead of exact values
• Relying on manual checks instead of alerts