A budget sheet is a very useful tool, which could help you to manage your earnings and keep you far away from debt. It is important to have a budget plan, whether you are a businessperson or a student. If you learn how to make a monthly budget worksheet then you will attain peace of mind that your money expenditure is under control. Read on and you will know how to make your budget planner worksheet.
How to Make Your Monthly Budget Worksheet
How does budget work?
Simply said, your budget is a plan for how you will spend your money. It helps you to easily understand how and where your money will be spent. The main objective of the budget plan is that your expenditure must be less than your income or at least equal to that. A budget plan is made after careful analysis of these two factors.
These are the overall costs you have. These could be loan payments, college fees, rental fees etc. All the regular and general needs like food, clothes etc are also included in expenses.
Your income is the money you obtain from a job or through a business. If you are a student or are unemployed, then your income will refer to your monthly pocket money.
Free monthly budget worksheet
It is possible for you to create your own free budget planner worksheet. You can do it with MS Excel. This is not something difficult. Here is a video showing how you can do it.
Fix your goal
Before you design your monthly budget worksheet, you must ask yourself some basic questions. These questions will help you to determine your goal in terms of budget making. The questions include “Do I want to simply manage my money and see where it is getting spent?”, “Do I need to focus on some particular type of expenditure through the financial budget worksheet?” etc.
Make a list of your monthly incomes
You could be earning from single job or multiple jobs as well. Whatever are the sources that provide you money, make a list of all of them. When you are done with this then, calculate your total income and mark a box around that figure on the worksheet.
In case, you receive your paycheck every week then multiple the figure by four. If you get your paycheck every single week then multiply by two. Once you get the idea, you just need to find out the exact amount of money you earn in a single month. However, in case you earn by commission or as per contract basis, then you could find your estimate income by totaling the money you earned in the previous year and then divide it by twelve. This will give you the average money earned per month.
Outline your expenses
Your expense that includes bills, house rent, and loan payments etc. are higher priority elements. After that, you can include other type of general expenses like food, clothes, gasoline, and other stuff you buy from the grocery store. Since we are working with facts and figures, so you need to be realistic. Make an actual list of all of your expenses, small or big.
Add more money than you think you will be spending on something like in a grocery store. This is a better and safe way to make your monthly budget worksheet.
Do not leave any single expenses of yours in the budget plan. Include the money spent on movies, drinks, coffee, etc. At first thought, you might want to ignore these thinking of them to be as unimportant but every small expense is important when you are making a viable budget plan.
In addition to all the money that you estimate to be spent on general things, include some extra money in the budget for emergencies. This urgent fund is for the situation when you fall ill or you have to throw a party for your boss etc.
Include the annual expenses
Payments for some things are done annually or after every six months. Even though these expenses do not come in the monthly budget but you have to include them as well. This is to make sure that you are prepared for your future. All you have to do is divide that money by twelve and add it in the monthly budget.
Modifying your budget
Even though you might have the perfect budget plan, you may still have to modify your budget from time to time according to the situations that arise. With your monthly budget worksheet, doing it will never be something too difficult. When you amend it, then, be sure that you do it as carefully as you did in the beginning.