A complicated budgeting tool can be a roadblock to getting your personal finances under control. It’s so easy to get discouraged and give up because maybe you’re not the most technically savvy person. A simple budget worksheet may be the solution for you.
There are two different types of personal budgets: a fixed income budget and a variable income budget. The fixed income budget works best if your income is relatively the same each week/month. The variable income budget works best if your income fluctuates throughout the month.
Following is an example of the fixed income budget. The fixed income example is for a weekly budget, but this applies to a monthly budget also. In next week’s article I’ll get into the variable income budget.
Fixed Income Budget Worksheet
It’s A Simple Process
I’ll walk you through the steps of how to use the worksheet.
Step 1: Enter the budgeted amount for each category. You may need to estimate if you’re not sure. Some categories could also be zero.
Step 2: Enter the total spent for each category in the second column. As you begin to spend money you’ll need to keep track by assigning the money spent to a category.
Step 3: The total amount budgeted should equal your total take-home pay. You need to make sure you assign every dollar you earn a category in your budget. Otherwise, your money just kind of disappears and you’re not sure where it went.
Step 4: Finally, at the end of each week/month the total spent should be less than the amount budgeted in each category. If there is an unspent amount in a category it can be rolled into next week’s budget or moved into another category where you may have over spent. The budget has to balance!
Are You Ready to Start Your Household Budget?
If you’re tired of out of control spending and ready to make a change then download your free fixed income budget worksheet below. As you work through the process and have questions let me know in the comments below.