Developing your budget is the first, most important step to saving money. Knowing how much you can afford directly determines how much you need to save. This Budget Worksheet provides an initial analysis of where your money is going. Most importantly, it offers a quick-start to developing your present budget so you can start saving money immediately.
Once you download this Budget Worksheet, it’s yours to keep, adjust, and modify until it becomes something you can use every month.
List all Income
Start by listing all your sources of income. Make sure to list your after-tax income since this is the money available for your expenses.
List all Expenses
Next, create a list of all your expenses. This includes regular, once a month expenses – like housing, food, utilities, transportation, and savings – but this also includes non-regular items like clothing, medical, recreation, and emergencies.
Combine it Together
Lastly, arrange your expenses so you pay the most important expenses first down to the least important expenses. There’s no right or wrong way to do this. In fact, depending on your ranking of most important expenses down to least important expenses, every budget can look quite different.
Ideally, the income should equal the expenses, but this is not an ideal world. It takes some adjustments to make the budget work out correctly. Unless you have money growing on trees, you will have to adjust the expense amount until the income pays for all expenses.