Budgeting is key if you want your money to be managed well. Other people often underestimate the power of budgeting, thinking that it would just give a headache or stress. Budgeting, however, could save you resources and encourage you to invest more by giving you an idea of how you make the most of your income. Your method of budgeting will define how good you are in money management. So immediately download our Sample Budget Template In Numbers now to have an idea about how to create one. This printable template comes with an editable and customizable feature so you can make any adjustments. Secure a copy now to get started!
How to Create a Sample Budget in Numbers
According to thebalance.com, only 32% of Americans prepare a budget. Since budgeting helps you to build an investment plan for your income, it means you'll have enough funds for the necessities you will need. So if you plan to create yours, then be guided by the easy and basic steps provided below.
1. Collect Financial Statements
Financial Statements comprise payslips, cash accounts, latest electricity charges, and any details about a revenue or cost source. One of the principles in the cycle of simple budget making is to establish a monthly average so that the more detail you can provide, the better.
2. Present Sources of Income
If you are self-employed or else you have any forms of revenue, please be sure also to document these. If your salary is in the context of a monthly stipend where deductions are withheld immediately, then with the use of the amount of the additional wage is fine. Report the total revenue as a monthly payment.
3. List Down the Monthly Expenses
Create a list of all the expenses you predict to incur over the month. You can include a loan payment, vehicle payment or insurance, goods, utilities, household or home fees, college savings, and other essential things that you allocate your money on.
4. Separate Fixed and Variable Expenses
Capital payments are those who remain completely the same every month and entail aspects of the way you live. These payments include expenditures such as house payment, insurance payments, internet service, garbage pickup, bill payments, etc. These payments are, of course, necessary, but it will definitely not be changed in the monthly budget. Thus, a variable payment is those that are likely to start every month. This section will be vital when making changes.
5. Add the Monthly Income to Monthly Expenses
You're off to a great start if your final outcome indicates more revenue than losses. It implies that you can transfer its surplus to aspects of your plan, such as pension savings, or spend on car loans to reduce the debt faster. If you present a column of expenditures higher than revenue, this suggests that some adjustments will have to be performed.
6. Create Changes to Expenses
If you have correctly defined and recorded all of your expenditures, the main objective would be to have equivalent columns of your revenue and expenses. It indicates that all of the revenue is compensated for, and a particular expenditure or investment target is budgeted.
