Monthly Budget Template: How to Create a Basic Template
Creating a monthly budget template can be daunting, especially if this is your first time doing so. No need to worry. We are here to help. Here, we will tell you how to create a basic template for your monthly budget. If you haven’t start budgeting yet, our brief guide should help you to get started.
When to Budget
Before we tell you how to let’s talk about timing first. That is, when is the right time to create a monthly budget template? The answer is before the month starts. Indeed. You are planning a month ahead. Planning ahead gets you ahead with life and money and makes you better prepared mentally and financially.
How to Create
First, make a list of your reliable sources of income. Put sources of income that you get regularly. Don’t include income that you get irregularly. If the amount of your income is not fixed, use the average instead.
2. Fixed Expenses
Next, list your fixed expenses. The fixed expenses here are the costs that you pay for certain items like mortgage, rent or insurance every month.
3. Common Monthly Expenses
These are the variable and discretionary expenses that you pay for each month. The amount of the expenses varies depending on your usage. The variable expenses are for things like electricity, water, gasoline, and the likes, while the discretionary expenses are for nonessential things, like dinner in a restaurant or TV streaming service.
4. Unique Monthly Expenses
Also, include unique monthly expenses as well. Keep in mind that the expenses of a month might not be the same as the next. There are always unique monthly expenses like membership fees, anniversary, school pictures, etc.
5. Planned and Actual Amount
To better monitor your spending habits, you should include not just the planned budget to spend but also the actual amount. This will make adjustments a lot easier.
A Zero-Budget Approach
When you budget, make sure that you get zero when you subtract your expenses from your income. That doesn’t mean that you have to spend every single penny you have. Rather, it means that after all of your expenses are covered, you should redirect the remaining money to your financial goals be it savings, vacation fund, and so on.
That is how you create a basic monthly budget template. It isn’t that hard to create a template for your monthly budget. Now that you know it, you can start to budget for the next month. Do remember the zero-budget approach to ensure that you spend your money efficiently. We hope this helps.