Content

• Steps
• Tips
• What do you need

Budget Sheets are a helpful guide to help you manage your income and stay out of debt. Budgeting is important for everyone, whether college students, families, or businesses. While it does take some effort, knowing how to create a budget sheet can actually give you the freedom and peace of mind as you know exactly where your money is going.

Steps

1. 1 Understand how a budget works. A budget is a plan for how you will and can spend your money. It helps you see where your money will go; May help save money on vacation, car, college, or retirement; it can help to stay out of debt. The final budget line says that your expenses are equal to or less than your income.
   • Expenses (also called costs) are payments you have: bills, loan payments, dry cleaning, food, clothing, and other needs.
   • Income is any money you receive, especially from work or services that you provide. Income may also include, for example, child support or child support.
   • Budgets can take many forms, depending on how detailed you want it to be. There are also many tools available to help you, including online budget sheets, software, and spreadsheets. Once you understand the basics of budgeting, you will find a system that works for you.
2. 2 Define your goal. Decide if you just want to keep track of where your money is going so that you can track your savings for something, your job to get out of debt, or try to pay for college yourself. Recognize your goal ahead of time so you can budget accordingly.
3. 3 Record your monthly income (s). It can come from one job or several. You may be paid to occasionally look after other people's children. It doesn't matter how income comes in, list it at the top of your budget sheet. Then find your total income and draw a rectangle around that number.
   • If you receive a paycheck every week, just take that number and multiply it by 4. If you receive a paycheck every two weeks, take that number and multiply it by 2. In both cases, you will have a little extra money throughout the year, which help cover annual or semi-annual expenses.
   • If you work for a commission or a client contract, estimate your monthly income by summarizing what you have done in the past 12 months and divide by 12. You will need to save a little more to make ends meet during the lean months ...
4. 4 Schedule monthly expenses. These include your regular bills: electricity or gas, insurance, mortgage, water, loan payments, and other monthly bills. This also includes gasoline, food, telephone, and any regular tithe or offering. List the expected amount of money to be spent in each category. Be realistic.
   • Set your priorities. Start with the things you really need or need to pay. This will ensure that you have the money for the most important items.
   • In the grocery category, you will plan more money than you think you will need.Many people tend to not save enough money here.
   • Add "extra costs" at the end. This includes things like movies, coffee drinks, books, music, or your favorite pastime. You may want to leave it out, but look ahead and plan for it. Later, when you get interested in these fun activities, you will know that it was in your budget.
   • Consider adding a contingency fund. Saving money for emergencies helps you avoid debt that arises in the event of a medical problem or other crisis.
5. 5 Add annual or other expenses. Some things are only paid once or twice a year. Set a monthly price for this item so that you are ready when it comes time to spend. For example, if you pay insurance every 6 months, divide that number by 6 to get your monthly expense.
6. 6 Check your budget. Calculate your expenses and see if they are equal to or less than your income. If you have income left, this is called a surplus. If your expenses are greater than your income, this is called a deficit. In the event of a deficit, you need to tweak your budget.
7. 7 Adjust your budget. There may be several reasons why you might want to change your budget. Perhaps you want to save money on a car, or you are spending more than you earn. You may have noticed that your actual expenses do not match your planned expenses. Or perhaps your income has increased, or you have decided to start a family. It's okay to adjust your budget to reflect the changes in your life.

Tips

• Find recommended cost guides online if you're not sure how much to budget for each category. They are available for one person, families of two or more.
• Make a family budget with your spouse if you are married. Include all income and agree on how much you spend in each category.
• Be patient. It can take several months for you to get used to using the budget or to get the numbers right in certain categories.

What do you need

• Paper
• Pencil
• Calculator