Getting started budgeting can be overwhelming. Budgeting for beginners is confusing. There is so much information on the internet and in books on personal finance.
How do you know what to follow?
Does any of the advice really work?
And how can we get our finances on track in the least amount of time possible?
We have been there. Budgeting when you are just starting out or beginning again is work. It is a lot of trial and error. You’ve got to see what works for your family, evaluate, and get creative.
Our lives and families are constantly changing which means our financial situation is never the same. We have to learn, adjust, and start again.
One of the easiest ways to gain traction with your money is by using monthly budget worksheets. It’s not complicated and you can customize your budget to meet YOUR needs.
Let’s walk through why monthly budget worksheets are GOLD for anyone at any financial stage!
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How do I calculate my budget?
You can calculate a budget in many different ways. There is no ONE way to make a budget.
First, gather all your financial data. How much money do you make each week, each month, or each year? Make sure you gather information from all of your income sources. Try to get an idea of what your monthly income is to your household.
Next, write down all your expenses. Make sure you write down and document every expense. You can’t make a good budget without knowing how much money you bring in and how much money you spend.
Third, make goals. A good budget is like a road map to your goals. The biggest mistake we see people make is to create a budget without good, solid goals. A budget should guide you to the goals you set.
Finally, write it all down. Budgets and goals are more attainable when we write them down. Check-in on your budget goals weekly, monthly, and yearly.
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What is a budget formula?
In business terms, a basic budget formula is INCOME - EXPENSES = PROFIT.
When it comes to personal finance, things look a little different.
A good personal finance budget formula guides you towards your financial goals. Your income should be more than your expenses and anything leftover should be used to pay down debt or save. Personally, we follow the baby steps and highly recommend it.
We used the budget percentage formula to guide us in reducing expenses and creating a zero dollar budget. A zero dollar budget forces you to spend every dollar you make. Nothing is leftover to chance. This budgeting formula is a disciplined approach to helping you keep your expenses in check
Related: Monthly Budget Worksheet using Percentage Formula.
How do I make a weekly budget?
To create a weekly budget, write down your income for the week. Next. look at your previous week's expenses.
How much did you spend?
Think about ways you could cut spending this week if needed. Use the budget percentage formula if needed to help cut your spending.
Next, write down what bills are due for the upcoming week. Mark in your calendar to pay them or set them to pay in advance.
Think about your big goals.
What is one thing you could do this week to get you closer to your goal?
Could you save a little money this week?
Maybe you want to open that savings account you’ve been putting off?
Try to do something small each week to move you toward your big goals.
Finally, check-in with yourself each month. Write down everything you spent over the month. Set goals for the next month to get you closer to your financial goals. Small steps over time make the biggest result.s
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How do you calculate monthly expenses?
Gather up all your bills, bank statements, credit card statements, and receipts. I keep all our papers in my budget binder.
Write down everything you spent last month by category. I use the basic categories in my budget worksheets. Add more if needed for your situation.
Add up each category and evaluate spending. What do you see? What do you need to adjust? What is ONE thing you could do this month to change your spending habits? It may be tempting to do 5 things but don’t overwhelm yourself. One thing at a time.
How do you create a family budget?
First, create goals.
What is your family goals with money?
Retirement?
Travel?
Give?
Write it all down and be specific. If your family has 2 adults, both partners should come together to create the goals.
Next, track your expenses. Write down everything your family spent last month. Don’t leave anything out! Organize your spending by category. Look at the totals.
What do you see?
What do you need to change?
What small changes could make today to get you towards your goals?
Make sure your expenses are less than your income. If not, we recommend using budget percentages to help you curb spending in your home. We recommend following the baby steps for savings, reducing debt, retirement savings, and college.
Finally, set up a system to review spending and your goals regularly. Some families review this weekly or monthly. Figure out what works for you. Document your success and celebrate.
How do you budget for low income?
When making a budget on a low income, remember food, shelter, and clothing come first! Make sure you can pay for rent or mortgage, food, and clothing needs before you pay for anything else. If you need additional guidance on how debt plays a role in this, we recommend Total Money Makeover. We use this to climb out of debt.
Reduce food expenses as much as possible. Shop with cash and stick to a budget! Meal plan for every meal. Small things like not buying boxed cereal, soda, or boxed/ prepared food will really help stretch your food budget. If you have an Aldi nearby, consider doing most of your shopping there. Aldi really helps stretch a small food budget. You will be amazing at how much you can save!
Use percentage-based budgeting to see where you can cut expenses or where you may be overspending. Use this formula as a TOOL, not a rule. If the percentages are too low for your family or where you live, that is okay. Control what you can and move on.
Reduce entertainment expenses as much as possible and review monthly expenses like phone, cable, or streaming services. Make sure you are getting the best deal. If you don’t use it, cancel it. Finally, use the library as much as possible! These days our local library has pick -up for all materials. It is safe and a time saver for busy families!
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What are the 5 steps of budgeting?
Find out how much money you are earning and bringing into your household each month and pay period.
Track all your spending. Go through all our expenses from last month and write down everything you spent. Organize it by category and total everything up. What surprise you? Where do you overspend? What bills could you negotiate or cancel?
Set financial goals. If you don’t’ have financial goals, now is a good time to make some. A budget is simply a road map to your goals. A good budget will motivate you to reach those big dreams. Don’t skip this step. It is so important!
Use budget percentages to evaluate where you could cut expenses. Set a monthly budget that works for your household. What are your income goals? Do you need to increase your income? By how much? How will you do that this year, next year, and 5 years from now? Write it all down.
Finally, stick to your plan. Make time to check in on your progress each week or month. If you mess up or overspend, start again. Don’t let a little hiccup take you off track. Life happens to all of us!
What does a budget worksheet show you?
A budget worksheet will help you organize your income and your expenses. It will help you see your individual situation and hopefully move you toward your goals.
A budget worksheet should show you at a glance the following things:
Your total income for the current pay period
Budgeting expenses by categories
Debt repayment plan and goals
Saving goals
We recommend a budget worksheet be zero-based meaning every dollar you bring into your household is accounted for each pay period in your budget.
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What is the best budget planner?
The best budget planner is the one you actually USE! I still use a paper planner
My binder has the following worksheets divided by month: