Start with the basics.
Putting together a monthly budget planner can help any individual or family have a better understanding of where their precious paycheck goes each month. You can develop your own budget planner that provides insight into how, where and when that paycheck is spent.
Instructions
Organize
1. Find your total monthly income. At the top of your planner individually list each item of income coming into the household. There should be a line item for each person's monthly net pay as well as any additional income from a company bonus or commission check. If you receive income from investments, rents or business income on a monthly basis it should have a line item as well.
2. Use your bank statement as a guide to find the outgo. Typically, most monthly expenses such as mortgage payments or rent, car payments, utilities and other larger items will be recorded on your bank statement. Start a list of all your expenses listed on your bank statement. Be sure to include line items on your planner for things that you may pay for with cash that will not be on your bank statement.
3. Group your expenses. Using that large list of expenses you just assembled, create categories that can be used to group line items together to make the list more manageable. You can label each category whatever you like as long as it makes sense to you. Common categories include utilities, food, auto expenses, entertainment and charitable giving.
4. Account for savings. Now that you have list of what you pay everyone else, list what you want to put away for savings each month. You may have categories here for general savings, an emergency fund or a vacation fund for your next family trip.
5. Put it all together. This is what financial planners refer to as the eye-opener step. Whether you write it on paper, or use your spreadsheet program in your computer, it's time to see the results of your hard work. Add up all of your income sources to get your total monthly income. Subtract your total expenses from your total monthly income to see what is left for your savings goals. Determine what adjustments you can make to your expenses that will help you achieve your savings goals.
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