![]() The above spreadsheets do this for you, but if you haven't completed an entire year, you need to first delete the columns containing the months for which you don't have complete information. To prepare for the final step in making a budget, you need to calculate your average monthly income and average monthly expense for each of the categories. Magazine subscriptions, car repairs, Christmas gifts, and birthday gifts are all examples of expenses that are sprinkled throughout the year, but these must be carefully considered when making a budget. ![]() See how the amounts change from month to month? By tracking you expenses from month to month, you will find that you make some purchases only once or twice a year (like going to the dentist). Making a Budget: Recording actual expenses. Below is a snapshot from the budget planner showing how I've recorded my actual expenses for Groceries and Clothing for January through March. The yearly worksheets are great for making a budget because you can record your actual income and expenses for multiple months. They list many of the most common categories that people use for tracking income and expenses. ![]() These spreadsheets work in Excel, OpenOffice, and even Google Docs. At this point, I'd actually start by downloading the yearly personal budget spreadsheet or the family budget planner if you have family obligations. I can't do step 1 for you, but I can help with step 2. When you've gathered all the information, you need to group all your income and expenses into categories. Step 2: Group Income and Expenses into Categories Some people find it useful to carry a 3x5 card in a wallet or a small notepad in a purse to record every time cash is received or spent.ĭownload the Income and Expense template if you want a simple worksheet to help you track your expenses. It is easy for cash and coins to disappear quickly without realizing where it is going: vending machines, toll roads, tips, kids, etc. You need to know how much money you have and exactly where your money is going.įrom this point on, you need to ask for receipts and track the flow of your cash. Get out all your bank statements, credit card statements, receipts, and all your cash. After making a budget, you have to track your expenses in order to stick to your plan, so we are going to start by tracking expenses as well. ![]() It is difficult to make a budget or plan without having some information to base it on. "A budget is a plan to help you live within your means" Step 1: Track your Income and Expenses ![]()
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