![]() The goal is to be “under budget,” by keeping your real costs less than your projected ones when you combine all of your budget categories. This is it – the moment of truth! Add up your real costs, and compare them to your projected costs (this should happen automatically if you use our budget spreadsheet at the top of this page). STEP 4: Determine if you are over or under budget. HINT: Enroll in online banking or download your bank's mobile app for the most convenient way to track your income and expenses. Once you enter in the actual cost into your spreadsheet, you'll be able to see the “Difference” between your projected and real expense in each budget category. For example, gas station expenses would be considered “Fuel,” while a fast food receipt belongs under “Dining Out.” Once you have a monthly total figured for each category, place the number under the “Actual Cost” header in your budget spreadsheet. Make sure each expense belongs to a specific category on your monthly budget template. ![]() Your bank and credit card statements are a good place to start! Picking the same day each month - the 1 st, or the 21 st, for example - can help keep you in the good habit of monthly budgeting. Pick a certain day each month to sit down and add up all of your real expenses from the past 30 days. STEP 3: Track actual monthly expenses and income. This is called going over budget! If you need more help, use our monthly budget calculator to get a quick idea of where your costs should be. HINT: After coming up with all your expenses, make sure your projected costs don’t exceed your take-home income. You will need to come up with an ideal amount (projected cost) you’d like to spend each month on these categories. These are expenses that change every month, and include things like groceries, gas, entertainment and clothing. ![]() Research what you’ve spent on your utilities over the past year, divide by 12 and use the monthly average as your projected cost. Utilities (sewer, electric, garbage, etc.) also count – but they’re a little trickier. This is any cost that won’t regularly change from month-to-month, including rent/mortgage, car/student loan payments, and insurance premiums. Look back at past months to come up with all of your usual expenses, and put these amounts in your budget spreadsheet as “projected costs.” Every projected cost will be one of two types: Fixed expenses: STEP 2: Come up with projected monthly expenses – “fixed” and “variable.” HINT: You can generate a little extra income each month by having some sort of Rewards Checking, which usually pays higher interest than a normal free checking account. Also be sure to add other sources of money you expect to get each month (a spouse's paycheck, for example). Once you have your total, place it in the "projected monthly income" box. If you get paid twice per month, be sure to add those figures together for your total. This won’t include taxes, social security, your 401(k) contributions or insurance premiums, because these items are usually taken out before your paycheck hits your bank account. When figuring your income, only count the amount that you actually see deposited into your bank account every month from your paycheck. Ready to get started? Follow these steps to create your monthly household budget planner: STEP 1: Note your “real” (take-home) income. Now, you might be asking yourself, “How do I make a monthly budget spreadsheet?” You'll be happy to know, we've already created a template to help you get started! Get a free monthly budget example by clicking the one of the buttons below.ĭownload for Excel (800 KB) Download PDF (143 KB)Ī Step-by-Step Guide to Creating a Monthly Budget
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