There are people with challenges keeping track of their income and expenditure. It is not uncommon for such a person to wonder where their paychecks are going month in month out. If this is your situation, you need a sure plan to keep your finances on check. A good way is by using free excel budgeting spreadsheet to help you understand how your money is utilized. However, when using this tool, there are important tasks you must carry out to enjoy great success.
No matter how good your template is, without proper financial goals you can hardly achieve anything. You need to be focused and disciplined to attain any of your financial goals. Nevertheless, there is need to set such goals fist. When creating your list, write both the short-term and long-term plans for your money. Always record these depending on their priority. Of importance is to note that most templates will leave room for adjustments should your needs change.
Consider your net income. This also includes any other source of income outside your salary. Make sure to less all deductions such as P. A. Y. E, social security, insurance and others. Only consider the amount of money that remains after all deductions. This is what you use in your budget worksheet.
Divide your expenses into fixed and variable. Some payments such as mortgage, insurance and others will remain the same for a long period. Those go into the category of fixed expenses. Others which change over time such as food, fuel and entertainment you will record in variable expenses. This kind of grouping makes your worksheet easier to manage.
Other groups you may consider include savings, wants and needs. This helps when choosing which items are mandatory to spend on. Money set apart for savings could go to your emergency fund or holiday plans. Needs are those items necessary for your survival. Luxuries or entertainment falls in the category of wants; one can choose not to spend on these and still live comfortably. Categorizing your expenditures makes it easy to point out how your money is spent. You can analyse easily and make changes where necessary.
You can find worksheets that are easily customizable. Make adjustments to fit your budget needs. An excel budget template is ideal when you want to fill your own fields. Focus on saving on variable costs if you want to cut on your expenses.
Always make sure to record daily expenditure. After sometime, these records will give an idea of main areas you spend your money. You can use such records to plan for the coming month before you get your salary. This way, you make sure you are not caught unaware.
You can download free worksheets in the internet today. If not a free budget excel worksheet, Google documents provides templates for you. If you want to personalize these, choose templates that allow for such. Others have options to expand should your needs increase.
No matter how good your template is, without proper financial goals you can hardly achieve anything. You need to be focused and disciplined to attain any of your financial goals. Nevertheless, there is need to set such goals fist. When creating your list, write both the short-term and long-term plans for your money. Always record these depending on their priority. Of importance is to note that most templates will leave room for adjustments should your needs change.
Consider your net income. This also includes any other source of income outside your salary. Make sure to less all deductions such as P. A. Y. E, social security, insurance and others. Only consider the amount of money that remains after all deductions. This is what you use in your budget worksheet.
Divide your expenses into fixed and variable. Some payments such as mortgage, insurance and others will remain the same for a long period. Those go into the category of fixed expenses. Others which change over time such as food, fuel and entertainment you will record in variable expenses. This kind of grouping makes your worksheet easier to manage.
Other groups you may consider include savings, wants and needs. This helps when choosing which items are mandatory to spend on. Money set apart for savings could go to your emergency fund or holiday plans. Needs are those items necessary for your survival. Luxuries or entertainment falls in the category of wants; one can choose not to spend on these and still live comfortably. Categorizing your expenditures makes it easy to point out how your money is spent. You can analyse easily and make changes where necessary.
You can find worksheets that are easily customizable. Make adjustments to fit your budget needs. An excel budget template is ideal when you want to fill your own fields. Focus on saving on variable costs if you want to cut on your expenses.
Always make sure to record daily expenditure. After sometime, these records will give an idea of main areas you spend your money. You can use such records to plan for the coming month before you get your salary. This way, you make sure you are not caught unaware.
You can download free worksheets in the internet today. If not a free budget excel worksheet, Google documents provides templates for you. If you want to personalize these, choose templates that allow for such. Others have options to expand should your needs increase.
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