Some things I knew exactly how much I spent because it was a fixed expense. When I concluded I listed everything I could think of, I started to figure out how much I spent on each item on my list. When making my list, I didn’t worry about how much I actually spent I just wanted to list the things I spent my money on. The way I determined what my monthly expenses were is I literally sat down and wrote everything I spent money on. Determine Your Monthly ExpensesĪfter I figured out my take-home pay, I look to see what my monthly expenses are. Whatever method you use, be sure to subtract obligations like taxes and business expenses to determine your take-home pay. If you don’t have a long income history, use the income you made from the previous month to determine your take-home pay for this month.Or if you like to be conservative, use the number from the month you earned your lowest income. If you have a record of your income for the past 12 months, you can take the average of all your monthly income for the past 12 months.If you are self-employed, have irregular income, or other outside sources of income you can use two methods to determine your take-home pay: This will allow you to see the actual amount of your take-home pay. Some examples of automatic deductions are: for a 401(k) or other retirement accounts, savings, or health and life insurance. However, if you have automatic deductions from your paycheck, add those back to your check. Whatever you see on your pay stubs is your take-home pay. If you have earned income from an employer where taxes are automatically taken out, it should be fairly easy for you to determine your take-home pay. Determine how much money you take-home after taxes on a monthly basis.I also make sure to subtract any obligations I have, like taxes and business expenses, to determine my take-home pay. Since I’m self-employed I take the average of all my monthly income for the year to determine my income. How To Use My Budget Spreadsheetįirst, I start by determining my take-home pay every month. You can use this for yourself as an example. So I’m going to share with you my monthly budgeting method. What Does A Normal Personal Or Household Budget Look Like?Įvery individual or household will have different spending habits, there is no right or wrong way to plan your budget. This is because you’ll be able to see what areas are spending the most money over time and where you need to cut back. While some people may think of it as a pain to spend time each month updating their budget spreadsheet, it’s an important part of the process. You need to add your income and expenses every month so you can see your progress. A Budget Spreadsheet Allows You To See You Spending Trends Over TimeĪ personal budget spreadsheet will allow you to see your spending trends over time. This helps to make sure your entire household can stay on the same page when it comes to money management, saving money, and achieving your financial goals. The best thing about a Google spreadsheet is that you can share it with your spouse. This allows you to get control of your finances and make more informed decisions about how much should go towards which categories. The best budget spreadsheets monitor your spending habits and cash flow over time to give you an accurate picture of where your money is going each month. What Is A Budget Spreadsheet?įor one, the data automatically calculates at each cell as you enter your expenses and income, which is much more difficult to do by hand.Īlso, a personal budget spreadsheet is a great money management tool because it will automatically put expenses in their correct expense category, saving you the hassle of having to manually assign categories. Plus, it lets you know where you’re having problems with spending money. This is very important because it helps you make your budget better and more accurate. Where a simple budget spreadsheet really shines is it can help you create a plan that is tailor-made and perfect for you.Īdditionally, keeping track of expenses over time allows you to see trends in your spending habits. A budget spreadsheet is easy to use, has many features, and can be used while on the go with your phone. They help you create your family budget and manage your personal finances.
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