Personal Budget Template

Planning a personal budget is a great way to manage your money. There are so many ways in which it can be done. Here we are going to look at some of these ways. The golden rule for personal budgets is to cut your coat according to your cloth. Therefore, make a note of your income. This should be your net income, your take-home pay. This way you will know exactly how much money is coming into your bank account. This is the amount you should include in your personal budget.

The next step is to make a list of your expenses. How much you are spending, what you are spending on the most, where can you possibly spend a little less – all of this can be kept track of in a personal budget. There are fixed expenses and variable expenses. Fixed expenses include monthly bills like utility bills, payments on the house, the car, etc. Variable expenses are expenses that vary from month to month like grocery bills and money you spend on shopping and entertainment. This is where there is most scope of adjustment. So, make a note of your credit card bills in your personal budget.

Personal Budget Template Excel Free

Next, make a list of your short-term and long-term financial goals. Knowing where you want to be financially will help you achieve your financial goals. Short-term goals, like reducing your credit card debt, will help you figure out where and how you can cut back on your spending in the very near future. Long-term goals, like a child’s education will take years to achieve. This will help you prioritize your spending and saving.

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Plan your budget depending on the things you need to have and you want to have. Fixed expenses will help you figure out how much you will have in hand after all the bills are paid. Break down your variable expenses individually so that you know what a need and a want is. This way you can adjust your expenses by cutting back slightly on the wants and prioritizing the needs.

Personal monthly budget spreadsheet

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Personal Monthly Budget Template Excel

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You may have to change your habits a little bit after evaluating your expenditure on wants and needs. If you can do without eating out, do so. Get a broadband connection but perhaps not the fastest. This will help you cut down on your expenses and save money. This money that you save can be put away towards your short-term and long-term financial goals. You may finally be able to be debt-free, put away money for your child’s education every month, maybe even save up for a new car, or your own house.

Planning a personal budget is the most foolproof way to get organized in your personal life. It brings order and stability in life. You no longer have to worry if you are ever in a situation where you don’t have a job. You may easily live a few months on your savings. Then you can find the job of your dreams and take some time off to tour the world.