Both people and businesses need to be able to keep track of their money. To make sure that they always have enough in order to keep going, they’ll need to look into things such as how much they make, how much they spend, what their spendings are being used on and much more.
To make sure that they’re aware as to where their money is going towards, they’ll need to create a budget document. This article will teach you all that you need to know in regards to how you can create a budget in Word.
Know that if you’re going to create your own budget document, then you’ll need to learn its basic elements first. They would be the following:
1. Income/Revenue: This would be the amount of money that you’re able to make within a certain period of time. It’s possible that you could either have regular or irregular income, sometimes even both; be sure to point out the type that you have. Knowing your core revenue streams will help you form the foundation of your entire budget. Calculate your estimations as accurately as possible to help you plan budgets for both best and worst case scenarios.
2. Expenses: Every budget should have a list of just how much is going to be spent. Once you have a good idea as to how much income or revenue you gain, you may then set your expense levels. It’s best that you divide your expenses into ones that need to be made and ones that are more of a personal choice. For businesses, it’s best to divide them into production and overhead expenses—the former for expenses related to the production of products and/or services while the latter for those that you already have.
3. Debt: If you have any debts that need to be paid out, then it’s best that you include them into the budget. Don’t forget any forms of interest charge that may be included. Forgetting to project how much interest you’ll generate during the year can lead to inaccurate year-end projections, thus giving you more problems in terms of budgeting.
4. Cash Flow Projection: Every budget document that you end up creating must contain information on when income arrives or when expenses need to be paid. Knowing your cash flow will tell you when you may pay for certain expenses and help you plan out when you are able to pay off whatever debt you may have.
5. Projections: It’s essential for you to be able to project long-term income and expenses. For example, your project budget will record your monthly expenses as they come in each month but should also estimate your average expenses each month while you’re updating the numbers. Doing this will give you an idea as to just how much you’ll have to spend by the end of the year, as well as the average amount of income you earn and expenses you pay for at the end of each month.
1. Access Microsoft Word: The first thing that you’ll need to do is to install the Microsoft Word program. This can easily obtain by either purchasing it online or your nearby computer store. Once you have it installed in your computer, then here’s what you will need to do:
If you like, you can use the same process to create other types of documents in Word.
2. Make your budget: Now you’ll be learning how to put in the information that the document needs in order for it to serve its purpose. Here are the things that you will need to do:
If you want to learn more about the other types that you can make, then you simply need to go through our site until you find the articles with the information you need.
Aside from Microsoft Word, you always have other options. For example, you can make a budget sheet by making use of programs such as Microsoft Excel. Just choose the one you’re most comfortable with or the one that you need to utilize.
Then that just means that you’ll need to keep making changes until you make more than what you spend on. Look into your expenses and figure out the ones that you need to make and separate them from any luxuries that you can cut off. There may even be times where you might have to look for other sources of income just to keep up with your expenses.
So long as you use the information in this article, then you should be able to come up with an appropriate budget for you or your business.