How to Create a Budget
So you want to know how to create a budget.
However, there are several types of budgets
By the way, just so you know, I prefer to create a little more sophisticated Budget.
You will need to take a piece of paper and make two columns.
Section 1 will have your Essential Monthly expenses.
Section 2 will have your Discretionary Monthly expenses.
By the way, just so you know, it will have two columns.
Column 1 Living & Column 2 Household.
Below the living and household expense you will have auto and transportation.
Your Essential expenses are your necessities, however your discretionary expenses are your optional expenses.
In any case, below is a diagram of how your plan should be laid out.
You will understand from the worksheet what is important and what is not.
However, a second use of this worksheet can be for retirement planning.
You need to understand the fixed expenses you need to cover and those that are by choice.
Essential Monthly Expenses
Essential Monthly Expenses
Living Household
Groceries __________ Mortgage/Rent ___________
Clothing __________ Property tax ___________
Beauty/Personal Care ___________ HOA ___________
Parent Child/Child Care ___________ Landscaping ___________
Education ___________ Maintenance ___________
Sports/Lessons ___________ Electricity/Garbage ___________
Credit Card Payments ___________ Water/Garbage ___________
Pet/Veterinary ___________ Home Phone/Wireless ___________
Other ___________ TV/Internet ___________
Total ___________ Total ___________
Auto & Transportation
Car Payment/Lease __________ Auto
Gas __________ Medical/Dental ___________
Repair Allowance __________ Long term Care __________
License/Registration __________ Life/Disability ___________
Other __________ Home/Renters ___________
Total __________ Total ___________
Discretionary Monthly expenses
Discretionary Monthly Expenses
Dining Out __________ Holidays/Wedding ___________
Vacations ___________ Other ___________
Hobbies ___________ Total ___________
General ___________
Charitable Donations ___________ Total Essential __________
Other ___________ Total Discretionary __________
Total ___________ Total Expense __________
See you at the top
Use this worksheet. Moreover, each and every month you can measure your input and your output.
It can be a launching pad for greater financial success.
Moreover, once you know where you are at, you can launch to where you want to go.
Additional Blogs
By the way, just so you know, here are some other Financial Topics
P.S. By the way, just so you know, if you are looking to increase your income
Try this:
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