To create a budget, you are better to create budget on spreadsheet. Creating budget at the book make you tired. You should update the column every month. It will be not effective. You must rule the line above the book that it is not straight. The book could be loss. You may forget to save the book.
You can also sum the entire of number with the spreadsheet. You just write the formula correctly to sum all the spending or expenses.
It is not difficult to create the budget on spreadsheet. You must be able to operate Microsoft excel or other spreadsheet software.
1. List all income at the first column
The first place is your paycheck or salary that is also your main income. Beside paycheck, you may bring home some bonuses from the boss. If you work overtime, you will get some money too. Write down all of your income.
Some employee also do side jobs. Write down it too if you have it. The business also may makes money for you. Write when the business bring you profit.
Categorize the income into two i.e. fixed income and variable income. The fixed is the income that you receive every month such as salary or paycheck. Meanwhile, the variable income is uncertain income that you receive every month. For example, business profit, royalty, and so on.
2. List the entire of spending below the income
There are two spending categories i.e. fixed expenses and semi fixed expenses. Write down the food that you can spend in a month. Do not miss a food even just one bottle of syrup. If you miss an item, the budget will not match.
You must pay the electric, water, heater, and phone bill. Write the previous bill that you have paid. The amount of number usually is just bit different for next month bill. Perhaps you watch the cable TV so you should write cable Tv bill on your budget.
3. List the entire debt you have
To eliminate the debt may be the short term financial goal. The debt forced you to share your expenses and reduce your spending. It may reduce your lifestye.
Write down the mortgage loan that you should pay every month.
You must have credit card bill too. Earmark some money to credit card bill. Perhaps you still have debt to car lease company.
4. List the save or investment
Saving and investment is also include in expenses; however, it will makes money for you someday. Clearly write down the entire saving and investment.
Hos to budget to saving