A monthly budget is an estimate of expense during the month. It keeps you safe from running out of your income and also enables you to make savings.
Everyone can create a monthly budget, according to his / her income and expenditure. Monthly budget helps in managing the expenses according to the income resources.
How to Make a Monthly Budget?
A monthly budget template is an exemplary sheet that guides the user for making a customized budget sheet. Templates can be editable and printable that provide much ease in document preparation. Use of a customizable template makes the task just a game of minutes as it contains all the formatting and formulae and the user just needs to enter personal data in the sheet. Spreadsheet software is more helpful for creation of monthly budget sheets.
For developing a monthly budget following sequence of steps is very helpful:
- First of all calculate your income that is available for meeting your monthly expenses. It is not difficult to estimate your monthly money making. If you are monthly salary based employee then add up your monthly salary and expected overtime and bonuses to find the total amount. In case of daily wages or weekly payments you also can calculate the total amount of money that you earn in a month.
- Enlist your monthly expenses in different categories. It includes all your utility bills, any loan installments such as a car loan or house financing and home grocery, etc. It may also include the credit card payments, insurance payment and any mortgage.
- Estimate out of routine expenses such as a gift on a friend’s birthday, attending any marriage party or any other event that can cause some extra expense.
- Now create a spreadsheet worksheet. Make a title of the monthly budget. In the next row, write serial No. income, expense details and amount in the adjacent cells. Insert the details in relevant columns. At the bottom of expense column, write total and in the next cell insert sum function on the range of cells to find the total expense. For a good budget total expense should not exceed the income.