There are three ways to prevent overbilling by AWS:

  1. Setup billing preferences
  2. Setup a budget
  3. Setup billing alarms

Billing Preferences

Go to your account at the top right of the page. Then select “My Billing Dashboard” as follows:

You should see the following screen under “billing preferences”:

Check the three checkboxes and type in your email. The three checkboxes are “Receive PDF Invoice By Email”, “Receive Free Tier Usage Alerts”, and “Receive Billing alerts”. Then click on “Save Preferences”.

AWS Budget

Then click on “Budgets” on the left navigation pane. You get two free budgets. After this it will be $14 per budget. You should see the following screen:

Click on “Create a Budget” to create a new budget.

Choose “Cost budget” and then click on “Set you budget”. You should see a form like the following

Fill in the form with your relevant information. Then click on “Configure Alerts”. You should see the following form:

Here you can set alerts that send notification when you used up certain portions of your budget. Then click on “Create”. The following page will appear:

This shows a summary of what we have setup for budget, how much of the money is used on, and so on.

The next step that most cloud admin take is that they setup CloudWatch alarms.

By master