How Does a Monthly Budget Worksheet Help You
So, you want to know how does a monthly budget worksheet help you?
Well let me ask you this, when you think of using a monthly household budget, do you think it’s too hard or unnecessary? I encourage you to read on and, hopefully, I will change your mind!
You will find below a downloadable and usable template for monthly budget on excel spreadsheet.
Why do you need a monthly household budget worksheet anyway?
Answer: to enable you to keep track of your household income and expenditure so that you can
(a) see where your money goes,
(b) live within your means, and
(c) take control of your money instead of letting it control you!
So how do you go about setting up a monthly household budget? It’s actually not too difficult, but it does require some initial time and thought. With any worthwhile undertaking, you only get out of it what you put into it, and that’s particularly true when creating a budget – because you supply the data! You can go high tech (using a computer spreadsheet) or low tech (pen, paper and calculator – you can, of course, do the necessary calculations by hand, but for speed and accuracy I suggest a template for monthly budget).
Steps To Take To Create Your Monthly Budget
First, you need to know how much income your household receives each year, so gather payslips, bank statements – anything that will show you what comes in each month. Write all these amounts down, together with the frequency of the payment (weekly, fortnightly, monthly etc).
Next, list all your household expenditure over the year.
A typical list might include: food; rent or mortgage payments; fares; loan and credit card payments; utilities like electricity, phone, gas, payments to local authorities; school fees; medical and pharmacy expenses; gas; motor vehicle expenses like repairs, insurance, taxes; household insurances; tithing and donations; tax; subscriptions; hairdresser; clothing and footwear; household repairs; music lessons and sport registrations; birthday and other gifts; employment-related expenses.
Things To Remember When Making A Monthly Budget
Remember to add pocket money (discretionary spending) for each household member. List all these expenses and their frequency (weekly, fortnightly, monthly etc). Some of them you may have to estimate (like food and clothing). It’s okay if it’s not perfect. A budget is something that changes and evolves from month to month as you remember things you had previously missed or alter your estimates based on actual expenditure.
Once you have all your income and all your expenditure listed, calculate a monthly figure for each item. Some will be a monthly figure already. Others you will need to reckon.
The easiest way is to convert each figure into a yearly amount (for weekly amounts multiply by 52, quarterly multiply by 4 etc). Then each yearly amount is converted into a monthly amount by dividing the yearly amount by 12. Add all your monthly income items to get a total monthly income amount. Similarly, add all your monthly expenditure items to get a total monthly expenditure amount.
Using A Monthly Budget On Excel Spreadsheet Conclusion
Hopefully, your income will exceed your expenditure. If it doesn’t you now have the data to see where your money is going, and you can make decisions accordingly – do you cut expenditure or do you find a way to increase your income? Now you’re ready to set goals and priorities as you allocate your monthly income.
P.S. you’ve just created your first monthly household budget!
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