How To Make A Simple Budget
Whether you need a budget because your debts are through the roof, you’re rearranging for a new home, or saving up for a skateboard, it all can be done very simply and easily.
Step 1: Think about the financial goal you are trying to set. It can be big or small, but try to stick to something you are fairly confident you can at least achieve in a year or two. Another good idea is to think of short and long term financial goals.
Step 2: Make an expenses table. List all of your monthly expenses, and the estimated amount of each right next to it. Don’t forget to add savings as an expense! Skip a row and add a column for the total, then make a sum formula to add all of your expenses below, like this.
Step 3: Add your total income above the total expenses. Then make another row where the expenses are subtracted from the income (another sum formula). If you’re not sure of your total income, make a guess.
Step 4: List the balances of all your accounts, and add them together to view your total assets and debts at a glance. Make another row where the total amount of surplus or deficit is shown.
Step 5: If you want, add color. Make expenses red, savings and deposits green, and your goals a “mystical” color like purple. Here’s an example of the final product: