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. Once you deduct statutory deductions, it gives you a clear idea of how much money you have left for spending. You cannot budget for what you do not have. This is one way of preparing to get into burdensome debts. Only plan for what remains after mandatory deductions.
Divide your expenses into fixed and variable. Some payments such as mortgage, insurance and others will remain the same for a long period. Those go into the category of fixed expenses. Others which change over time such as food, fuel and entertainment you will record in variable expenses. This kind of grouping makes your worksheet easier to manage.
You could also consider having categories for savings, needs, and wants. This is because there are times you have to decide about mandatory expenditures and wants to keep up with your financial goals. If any variable or fixed item is necessary for your wellbeing, it falls under needs. If you want to set up an emergency fund or save for a holiday, this goes to savings. List clearly in your worksheet to make sure you are certain where your money is going.
Always go for worksheets that are easily customizable to fit different users. Several excel budget templates exist online today. Such you can change a few things or add fields to match your requirements. If you want to gain control of expenditure, concentrate on the variable expenses and find areas you can save a few coins.
Always make sure to record daily expenditure. After sometime, these records will give an idea of main areas you spend your money. You can use such records to plan for the coming month before you get your salary. This way, you make sure you are not caught unaware.
You can download free worksheets in the internet today. If not a free budget excel worksheet, Google documents provides templates for you. If you want to personalize these, choose templates that allow for such. Others have options to expand should your needs increase.
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. Once you deduct statutory deductions, it gives you a clear idea of how much money you have left for spending. You cannot budget for what you do not have. This is one way of preparing to get into burdensome debts. Only plan for what remains after mandatory deductions.
Divide your expenses into fixed and variable. Some payments such as mortgage, insurance and others will remain the same for a long period. Those go into the category of fixed expenses. Others which change over time such as food, fuel and entertainment you will record in variable expenses. This kind of grouping makes your worksheet easier to manage.
You could also consider having categories for savings, needs, and wants. This is because there are times you have to decide about mandatory expenditures and wants to keep up with your financial goals. If any variable or fixed item is necessary for your wellbeing, it falls under needs. If you want to set up an emergency fund or save for a holiday, this goes to savings. List clearly in your worksheet to make sure you are certain where your money is going.
Always go for worksheets that are easily customizable to fit different users. Several excel budget templates exist online today. Such you can change a few things or add fields to match your requirements. If you want to gain control of expenditure, concentrate on the variable expenses and find areas you can save a few coins.
Always make sure to record daily expenditure. After sometime, these records will give an idea of main areas you spend your money. You can use such records to plan for the coming month before you get your salary. This way, you make sure you are not caught unaware.
You can download free worksheets in the internet today. If not a free budget excel worksheet, Google documents provides templates for you. If you want to personalize these, choose templates that allow for such. Others have options to expand should your needs increase.
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