What Is a Budget Worksheet?
A budget worksheet is a document used to track how much money you have spent in a given period of time. This document is also used to create a budget plan for the succeeding month. Having this type of document helps you manage your income and keeps you out of debt.
How to Create a Budget Worksheet
Managing your monthly income to sustain your needs might be hard, especially if you are surrounded by establishments that entice you to buy. It is especially hard to make ends meet if you are living in the metropolis since almost everything in this place would only work with money. In an article written by Tami Luhby entitled "It's Expensive to be Poor," which is posted in CNN Business, CNNMoney analysis of Bureau of Labor Statistics data found out that low-income Americans spend 182% of their annual income mostly on basic needs like food, housing, clothing, etc. There are some instances that your expenses can be higher than your net income. Making a budget is really vital because it helps you track all of your expenses and lets you save money to realize your goals. Here are some tips that can help you in creating your own budget worksheet.
1. Make a Format
There are various tools that you can use in creating your worksheet. You can choose Google Docs, Google Sheets, MS Word, MS Excel, Apple Numbers, and Apple Pages in creating your monthly budget, personal budget worksheet, household budget worksheet, or any budget worksheet.
2. Note Your Net Income
First of all, you can't have a budget sheet if you don't have anything to budget. Take into account all possible deductions that you can have like Social Security and taxes. The remaining amount would be your net income. Your net income would be the number that you should use in creating a budget.
3. Monitor Your Expenses
Keep track of all your expenses in a separate expense sheet. You must consider into account even the smallest penny that you have spent; nevertheless, it is still part of your net income. It is helpful to track your expenses so you can make adjustments. Never forget to record all fixed and variable expenses that you have. Fixed expenses are those that are paid every month, while variable expenses are those that can be changed from month to month.
4. Set Goals
Always set a goal to keep a to-do list to keep you motivated all the time. List all financial goals that you want to achieve—whether it is a short-term or long-term goal. Short-term goals are those that would take less than a year to be achieved, while long-term goals are those that can be achieved in years to come. Setting goals would inspire you to cut unnecessary expenses.
5. Adjust Your Habits
If you failed in the first month of budgeting, then you can try again the following month. Check which part you have overspent and then try to adjust your habits. Spend your money according to your needs, but not too much on unnecessary things.