How to Create a Monthly Budget in Microsoft Word
The 2013 Gallup poll found out that only 32% of households in the U.S. had monthly budgets. But did you know that preparing a monthly budget is crucial? When you prepare your budget, you're secured with your finances since you follow a budget plan. And whether you need a personal budget, business budget, or a household budget for the month, you can make yours with the tips below.
1. Record Your Income
Start your monthly budget with the amount of money you're receiving monthly. Before you record your monthly income, ensure that you've already deducted your taxes. If you have seasonal additions to your income, include them, too.
2. List Your Expenses
As part of your budget plan, you have to include the amount you're spending monthly. When you list your expenses, be sure to categorize them. For a family budget worksheet or a household budget worksheet, you can categorize them into food, healthcare, household, leisure, utilities, etc. Additionally, don't forget to track your expenses to ensure that you're sticking to your budget.
3. Identify Your Savings
Another essential part of any budget is your savings. You must set a budget for your savings. As you know, your savings will provide you and your family or business security in the future. Your savings can be for an emergency fund or retirement.
4. Adjust Your Budget
There will come a time when your expenses or income will change. So, it's essential to adjust your simple budget sheet according to the change. Lastly, be a planner and don't let the next month start without preparing for its budget.
What's the 50-30-20 budget rule?
The 50-30-20 budget rule is a way of budgeting. The 50% of your income comes to your needs, the 30% comes to your wants, and 20% comes to your savings.
How can I save money with a low income?
Having a low income is not a problem once you know how to budget your money. Below are some of the tips in using your money efficiently.
- Stick to your budget
- Don't eat outside often
- Don't shop when not needed
- Keep housing costs low
- Have savings
- Avoid debts
What are the common monthly expenses?
We've listed some of the common monthly expenses most people have below.
- Insurance (auto, health, life, etc.)
- Loan payments
- Memberships (clubs, gyms, etc.)
What is a sample budget?
A sample budget is any budget from other people or family that you can use as your guide when you want to create yours. A sample budget can help anyone who hasn't created a budget before.
What is a monthly budget?
A monthly budget is a list of how you will save or spend your income for the month. A monthly budget helps you keep track of your finances.