In this article, I’ll show you how to create a budget using a spreadsheet. While a budget is only one small part of the financial journey, I hope this will give you a good idea of how to prioritize future spending and set a realistic goal.
Setting a budget is an important first step to building a debt-free life. It gives you a sense of control and helps you prioritize your resources. Budgeting also provides you with a solid financial foundation for building wealth. Many people find that saving money and investing their money are the most important ways to get started.
Every month, thousands of people visit this blog, and they come for different reasons. Some want to learn about how to get out of debt, others want to know how to save, and still others want to know how to live a better life. My mission is to teach you how to create and maintain a budget that will help you achieve your financial goals.. Read more about how to prepare budget for a company and let us know what you think.Sometimes budgeting seems like the last thing that will bring you financial freedom and peace of mind. It seems that talking at length about money and working out a detailed plan would be tedious and stressful for them! It is a little known fact that making a budget and a plan for all your dollars is one of the most financial things you can do with your time!
Listen to me. If each of your paychecks has a purpose and a place, you will never feel guilty about spending the money where it belongs. I always felt so guilty when I bought new clothes for work or the gym. It was a waste when I could have spent that money on petrol or groceries! I then made a budget.
I now know exactly how much money I have each month for clothes, gas, and groceries, and I spend my clothing money with joy and freedom! Budgeting is truly one of the best things my husband and I have done for our financial health as a family and as individuals.
Where to begin in preparing a budget
When we made our first budget:
- My husband and I had an appointment, when we sat down and analyzed all of our income and expenses.
- We both came to the table with a full list of our sources of income and all the expenses we knew we would have to make during the month (think salaries, rent, phone bills, and wifi). Things we could have foreseen!).
- Then we discussed all the variable costs that can occur (think car trouble, new shoes, groceries and other incidents).
After breaking down all these categories, we estimated how much we should spend on variable costs based on our historical costs. This usually meant a quick search of our credit card history for the words gas or restaurants.
We now had a basic plan for our budget, we tried to balance our income and expenses, and we even had some wiggle room at the end. To have that extra reserve or money each month and use it well, we found and applied some quick budgeting tips.
Budgeting tips on the go
When it comes to groceries or clothing, I definitely approach extreme coupon status. I downloaded each store’s app to find the best coupons and deals of the week. I even use programs like Ibotta and Fetch to get rewards for every check I cash. In addition to researching these deals, I made sure to try different stores and compare prices to get the best deals on our favorite products and clothing.
When it comes to insurance costs, I’ve learned that it’s a good idea to look around. Several times a year, I go to different insurance companies to get quotes for auto, home and life insurance. I want to make sure I get the best price, and the only way to do that is to compare prices. I recently changed my car insurance and we are now paying $20 a month less than before. It all adds up!
Cut off excess
When we added up all our expenses, we realized that we were paying extra for some things and not getting what we were entitled to. App subscriptions, streaming subscriptions and even food delivery services cost us a pretty penny. We had to do all the work to cancel these unnecessary services that we paid for but never used.
It’s so easy for me to subscribe to a service that is first free and then paid for. Then I completely forget about follow-up costs, and they cost me a lot. What looks like a good deal always pleases me! Beware of subscriptions, recurring charges or services you no longer use or pay for.
Designate a budget manager
If you have a partner with whom you share finances, you need to be clear about who is responsible for what. We all know that finances can be a big problem for couples who don’t communicate well and aren’t on the same page when it comes to this topic.
While both individuals should be responsible for knowing and adhering to the budget you’ve created, it’s helpful to designate a regular budget expert who can raise issues and make necessary changes to the budget if you share finances.
This person may be responsible for checking bank and credit card statements, canceling subscriptions, finding cheaper insurance, etc. In our marriage, my husband does this. Surprised?
I decided that since I work in finance all day, it would be helpful for him to look at the big issues we need to address in the context of our personal finances.
I certainly have something to say, but I’m not the one who often follows our purchases. He fills that role and does so excellently.
Savings and investments
Finally, the budgetary advice I can give you is to set aside space in your budget to save and invest. The margin we were talking about earlier?
Consider putting these funds in both a savings account and an investment account. Of course, it’s best if you pay off your interest-bearing debt first before investing more. Keep your priorities in mind when budgeting this way:
- Paying principal First, you need to make room in your budget to pay off your debts so you don’t have to pay interest and make the money work for you.
- Establishment of an emergency fund Next, you should set aside an amount to create an emergency fund to protect you in case of large, unexpected expenses. You may be wondering how much to save. Experts generally recommend having enough savings to cover 3 to 6 months of expenses if you had no income.
- Investing : Now you can make money with your money. Once you’ve built up an amount that works for you, plan on making monthly contributions to an investment account and watch it grow!
Useful budget requests
As you go through the budgeting process, you may want to explore all the useful budgeting applications out there. I’ve tried them myself and I love them:
Mint is an application that you can connect to your bank or credit card accounts to see how your budget is doing in real time. You can assign expenses to specific categories and check the amount left in each category during the month. You can even track upcoming bills and set savings goals to stay on track.
YNAB stands for You Need a Budget, and it lives up to that concept. It’s similar to Mint, but a little more detailed in my opinion. This application comes with a cost, but can pay off in the long run if you need to control every dollar you make. If you’re the type of person who likes visuals and charts that show how close you are to your goals, YNAB is for you!
Wally is probably the most visual budgeting app out there. At a glance, you can tell if you’re on time for the month or if you’d be better off waiting to buy your next outfit. The user-friendly design makes it easy to see all your accounts in one place and keep track of your money.
Not to mention the apps your bank gives you access to so you can easily track bills, expenses, and paychecks. You should check them from time to time to make sure you don’t have any unexpected expenses, fraudulent payments or missed payments. I can even deposit checks through my bank app!
Once you go over the basics of budgeting, create your budget, pair it with these tips and tricks, and download some simple budgeting apps, you’ll be on your way to financial freedom.
After my husband and I set our budget and reviewed it regularly, I no longer felt guilty if I had to make a purchase that seemed expensive or unnecessary. If I budgeted for it, I might as well buy it now!
We no longer live from day to day, we save and invest every month and we never miss a bill. You too can help yourself and manage your money successfully! Just set a budget and follow these simple tips.The idea of a budget is something most of us are familiar with, but unfortunately, it’s not something we’re all good at. Most of us get our bills paid automatically, and we don’t know how to change that and start making a budget.. Read more about how to create a budget spreadsheet and let us know what you think.
Frequently Asked Questions
How do you start a budget for a beginner?
The first step is to figure out how much you can afford to spend on your hobby. If you are just starting out, it’s best to start with a small budget and work your way up from there.
What is the 50 20 30 budget rule?
The 50 20 30 budget rule is a guideline for spending money. It suggests that you should spend no more than 50% of your income on necessities and no more than 30% on discretionary items.
How do I start a budget with no money?
You can start a budget with no money by using the following steps: 1. Determine your monthly income and expenses. 2. Create a list of all your monthly expenses, including rent, utilities, groceries, transportation costs, etc. 3. Divide your monthly income by the number of months in the year to determine how much you have to spend each month on these expenses. 4. Create a list of all your savings goals and divide them into categories such as “savings for a vacation,” “savings for a car,” etc. 5. Determine how much you can spend on each category of savings goal and create a budget based on that number. You can start a budget with no money by using the following steps: 1. Determine your monthly income and expenses. 2. Create a list of all your monthly expenses, including rent, utilities, groceries, transportation costs, etc. 3. Divide your monthly income by the number of months in the year to determine how much you have to spend each month on these expenses. 4. Create a list of all your savings goals and divide them into categories such as “savings for a vacation,” “savings for a car,” etc. 5. Determine how much you can spend on each category of savings goal and create a budget based on that number.
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