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.
Plan for your net income only. This is the amount of money remaining after subtracting statutory deductions or so. It gives you a realistic figure of the money available for spending. You cannot afford to plan for your salary before deducting items such as P. A. Y. E, insurance, and social security, among others. You may end up spending above your available income.
Divide your expenditure into fixed and variable groups. There are items such as mortgages, insurance and others that you have to pay every month for a long time. These are fixed expenses. Other items such as gas, food and entertainment are likely to change depending on various factors. Always list these on a different column. Indicate the amount you pay for each item in a month.
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.
Look for a worksheet that you can easily personalize to fit your needs. You could go for an excel budget template if need be. With this, you will create fields that match your spending categories. Concentrate on your variable expenditures to see if there is some money you could save.
Always note your daily expenses. You may not have them in your worksheets; but writing such in a paper will help in showing different areas where you spend money. Use such details to plan for future. Planning for your income in good time enables you to use it for desired items only. This way, you avoid unwanted or impulse purchases.
Different worksheets exist online today. You could try free budget excel worksheets. Google document spreadsheets are also a great alternative. You can find excel or Google budget template worksheets that you can customize to fit your needs.
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.
Plan for your net income only. This is the amount of money remaining after subtracting statutory deductions or so. It gives you a realistic figure of the money available for spending. You cannot afford to plan for your salary before deducting items such as P. A. Y. E, insurance, and social security, among others. You may end up spending above your available income.
Divide your expenditure into fixed and variable groups. There are items such as mortgages, insurance and others that you have to pay every month for a long time. These are fixed expenses. Other items such as gas, food and entertainment are likely to change depending on various factors. Always list these on a different column. Indicate the amount you pay for each item in a month.
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.
Look for a worksheet that you can easily personalize to fit your needs. You could go for an excel budget template if need be. With this, you will create fields that match your spending categories. Concentrate on your variable expenditures to see if there is some money you could save.
Always note your daily expenses. You may not have them in your worksheets; but writing such in a paper will help in showing different areas where you spend money. Use such details to plan for future. Planning for your income in good time enables you to use it for desired items only. This way, you avoid unwanted or impulse purchases.
Different worksheets exist online today. You could try free budget excel worksheets. Google document spreadsheets are also a great alternative. You can find excel or Google budget template worksheets that you can customize to fit your needs.
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