A weekly budget is a financial plan for a week. It may also include the scheduled volumes of sales and profits, amounts of resources, costs and expenditures, assets, liabilities, and cash flows. It is used in measurable terms by companies, governments, relatives and other organizations to convey strategic budget plans of operations or events.
Budgeting can assist in simplifying your economic life and organize it. If you receive a paycheck on the first of each month and all your bills are due at the same moment, the method is so simple. Since budgeting enables you to create an expenditure estimate plan for your money, it ensures you always have enough money for the things you need and the things that matter to you. But even you are paid weekly or biweekly, making a weekly budget planner only requires a few easy steps. Here's how!
1. Gather All Your Paperwork
First things first, you have to find any documentation from the past five or six months. It could be a statement from banks, receipts from grocery stores and food stalls, loan statements, or monthly bills. The moment you start making your budget, whether monthly, biweekly, yearly, or quarterly, you will then realize that it's better keeping your legal documents than just being shredded.
2. Calculate Your Weekly Income
Next thing to do is to write down all of your month-long sources of revenue. If your revenue tends to differ considerably, add the last three months and split it by three to get a monthly average. To get a weekly income number, take your monthly average and divide it by four.
3. Create a List of All Your Expenses
Now, you will be going to make a list of all your expenses from the past five to six months. You can try writing your expenses in a budgeting program such as Mint or download a free template at Template.net PRO and start tallying. Moreover, divide all these costs into thematic classifications such as restaurants, grocery stores, and gas. Summarize the quantity spent over the month and split it into four to obtain the weekly quantity. Then, total the amount spent over the month and divide it into four to get the weekly amount.
4. Divide Your Expenses Into Discretionary And Non-Discretionary
Discretionary expenses are ones that stem from lifestyle choices made by you, such as eating or gym memberships. These expenses should amount to no more than 30% of your total income. While non-discretionary expenses such as rent or mortgage payment, are essential that you can only mildly change. They should amount to 50% or less of your complete monthly revenue. Thus, one helpful strategy of budgeting is to rank discretionary costs from least to most in order of significance.
5. Subtract Your Expenses From Your Income
Add up your weekly expenses from both your discretionary and non-discretionary categories and subtract this amount from weekly income sheet. Put it to savings or meet your other objectives if you have cash left behind.
6. Make Necessary Spending Adjustments
If you even strike or spend too much every week, look at your discretionary expenses as a manner to reduce costs. To evaluate if it was absolutely essential, scrutinize each purchase.