How to Structure a Monthly Budget in Google Sheets
In an article on CNN Money, recent studies show that only 41% of people have a budget plan. Whether it’s for personal or business purposes, people should see how important budgeting is for everyone. To make the process easier for you, we've laid out tips that you can use as your reference.
1. Determine the Duration of the Budget Plan
We already know that your budget sheet should have a monthly interval, but determine how long you’ll be using it. Your budget could last six months, one year, or more than just a year. This will enable you to have a goal, which is very important to ensure that your budget is fully measurable.
2. Decide on an Ideal Budgeting Strategy
There are various ways to manage your budget, which means you need to decide which one works best for you. One of the most basic strategies is the 50/30/20 method. If this works for you, then do it. But if it doesn’t there are many other methods to choose from, simply refer to our FAQ section below to find what these are.
3. Organize and Prioritize the Expenses
This is very self-explanatory. Prepare a list of the expenditures and organize it according to importance. In budget plans, always prioritize expenditures that require immediate attention before others. Only when there’s enough money left should you spend on other expenditures.
4. Don’t Shy Away from Making Adjustments
Earlier, we mentioned that you should prioritize your monthly expenses. Doing this will force you to make adjustments to your plan. Simple revisions or adjustments are not bad, so don’t shy away from making them. Always be flexible when creating a monthly budget.
5. Keep Monitoring Your Progress
Just because you’ve finished creating your budget spreadsheet, it doesn’t mean you can finally relax. Always keep an eye on your progress, especially on the cash flow. Make sure your expenses don’t exceed your monthly income. This will help you determine your budget plan's success.
What is a monthly budget?
A monthly budget is a financial plan that takes into account the income and expenses over a month. People also use this to determine where their money is coming from and where it is being spent on.
Why is budgeting important?
- Budgeting keeps you focused on your financial goals.
- Budgeting gets rid of compulsive spending.
- Budgeting makes you realize your own financial contentment.
What are the types of budgeting methods?
- 50/30/20 method - This refers to setting aside 50% of your earnings for your needs, 30% for your wants, and 20% for your savings.
- The 60% method - From your earnings, 60% should be used to settle mortgages, insurances, and basic necessities. The remaining 40% is up to you.
- The “no budget” method - Unlike other methods that require math, this one only requires you to keep track of your bank balance.
What are the different types of expenses?
- Fixed expenses.
- Variable expenses.
- Periodic expenses.
- Recurring expenses.
How can you stick to your budget?
- Always make a list of your expenses.
- Only bring a limited amount of money when going out.
- Have more than just one bank account.