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Introduction to AWS
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How to setup billing alarms for AWS account
How to secure AWS Root account
How to enable MFA on AWS account
AWS Tutorial
    About Lesson

    When you create a new AWS account, it’s easy to lose track of how much you’re spending, especially if you’re exploring AWS services for the first time. Setting up billing alarms is a simple yet effective way to monitor costs and avoid unexpected charges.

    In this tutorial, we’ll explore the process of configuring a billing alarm in AWS so you can stay in control of your expenses.

     

    Why Set Up Billing Alarms?

    AWS operates on a pay-as-you-go pricing model, which means your costs can escalate quickly if you’re not careful. A billing alarm helps by:

    Monitoring Costs: Tracks your usage and spending in real-time.

    Sending Alerts: Notifies you when your costs exceed a predefined threshold.

    Preventing Overruns: Allows you to take corrective actions before charges spiral out of control.

     

    Prerequisites

    Before setting up a billing alarm, ensure the following:

    1. You have access to your AWS account’s Management Console.
    2. Billing alerts are enabled in your account.
    3. You’ve configured your preferred email address for receiving notifications.

     

    Step-by-Step Guide to Setting Up a Billing Alarm

    Step 1: Enable Billing Alerts

    1. Sign in to the AWS Management Console.
    2. Navigate to the Billing Dashboard by searching for “Billing” in the search bar.
    3. In the left-hand menu, select Billing Preferences.
    4. Check the box to enable Receive Billing Alerts.
    5. Click Save Preferences.

    Step 2: Access Amazon CloudWatch

    CloudWatch is AWS’s monitoring and observability service that we’ll use to set up the billing alarm.

    1. Open the AWS Management Console.
    2. Search for and select CloudWatch from the services menu.

    Step 3: Create a Billing Alarm

    1. In the CloudWatch console, go to the Alarms section in the left-hand menu.
    2. Click Create Alarm.
    3. Select Billing as the metric. (If you don’t see billing metrics, ensure your account is set to use USD as the currency and that billing alerts are enabled.)
    4. Choose the metric EstimatedCharges.

    Step 4: Configure Alarm Details

    1. Define Threshold: Set the threshold value for the alarm. For example, if you want to be notified when costs exceed $10, enter “10” as the threshold.
    2. Select Period: Choose an appropriate monitoring period, such as daily updates.
    3. Click Next.

    Step 5: Set Up Notifications

    1. Under the Notification Settings, choose Create a new SNS topic.
    2. Enter a name for the topic, such as “BillingNotifications”.
    3. Add your email address to the subscriber list.
    4. AWS will send a confirmation email to the specified address. Confirm your subscription by clicking the link in the email.

    Step 6: Name and Create the Alarm

    1. Give your alarm a descriptive name, such as “MonthlyBillingAlarm”.
    2. Review all settings and click Create Alarm.

     

    Managing Your Billing Alarm

    Once the billing alarm is set up, you can:

    Modify Thresholds: Adjust the spending threshold as needed.

    Add Subscribers: Include other team members or stakeholders in the notification list.

    View Usage Reports: Regularly check the Billing Dashboard for detailed cost breakdowns.

     

    Tips for Cost Optimization

    Set Multiple Alarms: Create additional alarms for different thresholds (e.g., $10, $50, $100) to track escalating costs.

    Use AWS Budgets: AWS Budgets provide more granular control and allow you to set budgets for specific services or teams.

    Enable Cost Anomaly Detection: This service uses machine learning to identify unusual spending patterns.

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