Considering the bad state of the economy, it is important to budget. Setting up your own customized budget planner is the best way to get a good idea of how much money you have coming in and how it is spent. Something as simple as a spreadsheet is more than enough, especially considering the automated math function it offers. Step 1
Create a spreadsheet of your total household income. This includes everyone’s wages plus any other earnings. Step 2
Make a list of all your fixed expenses. Rent, bills, subscriptions and charitable giving tend to stay pretty steady every month. Use some of your old bank statements to put this list together. Step 3
Draw up a second list of your flexible expenses. Food, travel and medical expenses will fall into this category. This list will be harder to put together because the items tend to vary, but is important to draw up an accurate budget. Step 4
Using the correct formula, total up the lists in your spreadsheet to indicate how much money you have coming in compared to how much you are spending. Calculate 10% of the remaining funds and set up a direct debit to put that amount into a savings account. Step 5
Divide the amount that is left by 4 to figure out your rough weekly spending budget. This will indicate how much you can spend on non-essential items and entertainment.
Martin Severe
