Today we’ll use the Family Monthly Budget to build your budget.
In Part I of How to Budget Your Money, you put together your spending log and have a good idea of your spending habits. Hopefully you’ve pinpointed areas of wasteful spending, or ways you can cut back on your spending.
Now we’ll put together your budget. We’re going to use the numbers you collected on your Spending Log to create your budget, and we’ll use a spreadsheet called the Family Monthly Budget to do it. Now please don’t get scared by the term spreadsheet – the hard part has been done for you. If you can type in numbers, you can use this spreadsheet!
Download the Family Monthly Budget Spreadsheet. (This spreadsheet you are downloading is from my personal files. It has been scanned and is free from any type of virus, spyware, etc.)
- In order to use the spreadsheet you will need Excel. If you do not have Excel, you have a couple of options. You can download Open Office which is completely free and offers a spreadsheet component, or you can use Google Documents which is also free.
The spreadsheet is very easy to use, and will give you an easy and accurate picture of your spending and income. It has 2 parts: your planned spending with income, and your actual spending with income.
Planned Spending & Income Instructions:
- For each category, add your Planned Spending – what you plan on spending each month.
- Add your Planned Monthly Income – the amount you normally bring home each month.
- The spreadsheet automatically keeps track of your balance.
- If the number in the Planned Balance Column is black, your income is higher than your spending. That is good.
- If the number in the Planned Balance is red, your planned spending is higher than your planned income. You’ll need to lower your planned spending.
Actual Spending & Income Instructions:
- Follow above instructions, but now enter in your actual spending for each category, and your actual income.
- The Actual Balance automatically calculates and shows your final totals for the month!
Download Family Monthly Budget.
Additional Budgeting Resources: