Online pre-made worksheets can also be customized for college students or self-employed professionals. You can access a number of free budgeting worksheets online here. Check out some more free examples online here.

If you like, break down sub-categories within expenditure areas like “food” or “entertainment. ” For example, you could have “restaurants,” “bars,” “take-out” or “movies,” “concerts,” and “theater. ” Or, you could use multiple spreadsheets each month. For example, 1 could be only for fixed expenses, another for variable expenses, and a third for your various sources of income.

At the end of the month, add up the expenses and confirm that they’re less than the total income.

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If you find that your monthly expenses have shifted and your expenses are now larger than your income, reduce your variable expenses to balance the budget. Once you start living within your means, it’s time to plan for a financial goal, like saving up for a new car. Or, you could put your money to work by investing in stocks and bonds.

For example, if you have a total net income of $2,000 a month, earmark $400 for savings Your savings fund will help you be prepared for anything unexpected that might come along, like a medical bill or a parking ticket. [4] X Expert Source Nicolette Tura, MAAuthentic Living Expert Expert Interview. 28 January 2020. For an easy way to help your savings grow, have a certain amount transferred into savings out of every paycheck you get. You can start really small, then increase the amount you save gradually. [5] X Expert Source Samantha Gorelick, CFP®Financial Planner Expert Interview. 6 May 2020.

While some types of debt repayment—e. g. , car loans or a mortgage—will fall under your fixed expenses, other types may not. For example, many people defer their credit card payments for months on end and rack up financial penalties. If you’re not able to set aside money for both savings and debt repayment, focus on paying off the debts. If necessary, you could use the entire monthly 20% that you would set aside for savings to pay off your debts.

Income can include more than just your salary. Also include income from sources like tips, scholarships, legal entitlements like child support, alimony, cash gifts, government subsidies, and any other money that comes into your wallet or bank account. If you’re self-employed and file your own taxes quarterly, keep in mind that your take-home pay at the end of the month isn’t your true net income. You’ll need to calculate your average monthly income after your quarterly taxes have been subtracted.

Fixed expenses, by definition, must be met each month. In other words, the payments and amounts are non-negotiable.

Unlike fixed expenses, variable expenses can fluctuate from month to month and are generally non-essential. This will be the first place to make cut-backs if you are spending beyond your means. You’ll be more likely to stick to a budget if you base it around what you actually spend. For instance, if you like to go out to eat a lot, but you don’t include any money in your budget for dining out, you’ll probably end up pulling that money from somewhere else. [10] X Expert Source Samantha Gorelick, CFP®Financial Planner Expert Interview. 6 May 2020.

For example, sub-categories include rent, utilities, food, entertainment, and clothes. To figure out your total monthly spending, go through monthly bank statements or itemized credit card bills and calculate the total within each of these categories. Let’s take “auto” as an example, and say that each month you have a car payment of $300 and a $100 insurance bill. In addition, every month you spend an average of $250 on fuel, $50 on maintenance, and $10 on taxes and fees, such as registration. So, in the “auto” category, your total budget for the month would need to be at least $710 per month.

For example, say you make $2,000 monthly. Say that, when you add up your total expenses (fixed and variable), they come to $2,700. This tells you that you’ll need to cut at least $700 from your monthly budget. It’s really important to know what’s coming in and out of your monthly expenses, so try keeping track of everything that you spend for a whole month. Then, try to determine whether the money you’re spending really reflects your values. [12] X Expert Source Nicolette Tura, MAAuthentic Living Expert Expert Interview. 28 January 2020.

For example, say you realize that you’re spending $200 a month on eating in restaurants, and calculate that you’re $100 over budget each month. The most effective solution would be to spend $100 less on restaurants. So, you’d need to cap your total restaurant expenditures at $100 monthly. If you’re having financial trouble, prioritize staying current on your bills. Try reaching out to your utility companies or other billholders to ask about any assistance that may be available. [14] X Expert Source Samantha Gorelick, CFP®Financial Planner Expert Interview. 6 May 2020.

For example, if you’re used to taking 2 family vacations each year but can’t currently pay your mortgage, cancel 1 vacation and pay your mortgage instead.