Using a sample home budget worksheet is the easiest way to create a balanced budget and handle your finances better. It will help you learn about your income and expenses and help you organize your finances so you can take control of them. You may have already started taking steps to make your financial situation better, but you may not know how to get things started and organized properly. You need a working budget, not just a list of things that you want to do.
A working budget allows you to see where you are at on your journey toward financial recovery. It will show you the areas that need improvement, and you can use it as a guide for all of your future decisions. Most people already spend their money wisely, but some have no idea where their money goes or how to find it again when it is needed. With a budget, you can go through each bill and figure out how much money you owe.
The first step to starting to take control of your money is to look at your bank statements each month. You can create a free spreadsheet or another worksheet that will help you gather this information. Start by gathering a basic outline of your monthly bank deposits and then put in the numbers for your mortgage, car payment, utility bills, credit card payment, and any other income you receive. It is best to keep only the basic information on hand, but if you are required to report this data, you can add it later on.
After you have completed a basic outline of your monthly income and expenditures, take it and try to use it as a guideline for the rest of your money. When you know how much money you are paying each month to creditors, how much money you have to spend on groceries, and how much money you are spending on entertainment, you can start to come up with a spending plan. Start by excluding the debt from your budgeting. When you write a payment for it, make sure you include all of the interest and any other fees.
Once you have eliminated all of the interest and fees associated with your payments, you can continue to add items to your budget. All of your money should be accounted for; you cannot spend more than you earn. Some examples of items you can eliminate from your budgeting are credit cards, restaurants, cable, groceries, or gasoline. Once you have removed these items from your budget, you will be able to plan your income and determine how much money you will have to spend on the items you want.
Once you have eliminated these items from your monthly money, it is time to organize your money. Create a separate checkbook and a separate deposit slip for each checking account. Include all of your income in your budgeting and budget the amounts on the slips. This will allow you to see how much money you have available each month for all of your different expenses.
You may also want to group your monthly checks into categories. There are several popular categories for this, such as utility bills, mortgage payments, credit card payments, car payments, entertainment, food, and clothing. For example, you may want to have one check for your gas and one for your cable bill each month. You can even decide how to deal with the final payment of any debt or bills that you do not have to pay every month.
Once you have everything organized and worked out for each category, you can add the rest of your monthly income and expenditures to the worksheet. If you have more than one paycheck to deal with, you may want to separate the expenses into their category. This will help you get the information you need and put it to good use.