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#YOU NEED A BUDGET SPREADSHEET HOW TO#
#YOU NEED A BUDGET SPREADSHEET SERIES#

This includes expenses like recreation and entertainment.

Discretionary spending: Discretionary spending are non-essential items that you can purchase if you have money leftover.

The goal of budgeting is to allocate more money towards your savings, so try your best to not dip into your emergency savings unless absolutely necessary. Your savings are how much money you’re going to put away each month.

Savings: This can include your personal savings account, 401k, and more.

Necessities: Your necessities are essential expenses that you can’t live without, like rent and groceries.

There are some key living expenses that most people include in their budget.įor the most part, the expense portion of your budget should consist of three basic categories: The items to include in a budget will look different for each person, as people have different circumstances that impact their spending, it’s still helpful to have a general idea of what to include in a budget. Try paying off your smaller debts first before moving onto those larger, more daunting debts. This can include credit card debt, debt from medical bills, college debt, or debt from numerous other circumstances. Living a debt-free life is the ultimate goal, but the only way you can really achieve that is by accounting for your debt in your budget. How much you spend on investments will differ for each person, so make sure you do some research into investing before getting started. In addition to budgeting, another good way to save for retirement is to start investing. Saving for retirement early means you can create and plan the future that you want, and it also means that you’ll be able to live comfortably when you’re older. It doesn’t matter how old you are when you create your first budget, it’s never too early to start saving for retirement.

You may also want to consider including emergency savings as well-you can never be too prepared. Savings can include both short-term and long-term savings goals such as saving for your down payment, buying a new car, travel, and more.

If you have multiple income sources, you’ll need to combine them to figure out your total income. If you get paid monthly, multiply your monthly rate by 12.If you get paid weekly, multiply your weekly rate by 50.If you get paid daily, you’ll want to multiply your daily rate by 200.If you get paid hourly, you’ll want to multiply your hourly rate by 2,000.

#YOU NEED A BUDGET SPREADSHEET HOW TO#

How to calculate your total income depends on if you get paid hourly, daily, weekly, or monthly. In that case, you’ll need to either cut back on costs or figure out a way to make more money through additional income sources. In order to cover all your living expenses, it’s important to have a good salary, but sometimes that isn’t enough. There are various ways you can earn money in addition to your main source of income, like by investing or taking up a side hustle. To calculate your total income, you need to account for all of your different income sources. What Should Be Included in a Budget?Ī budget should include your income, savings, debt repayment, and general expenses.

#YOU NEED A BUDGET SPREADSHEET SERIES#

Budgeting May Take Some Practice But It’s Worth Itįor more information about budgeting and how it can benefit your life, be sure to continue reading the remaining chapters in the series as well.What If I Forget Something in My Budget?.To learn more about things to include a budget to make sure you’re accounting for all of your expenses, continue reading the chapter from start to finish, or use the links below to navigate the post. It may take some time before you figure out a budget that works for you, but having a budget is a crucial part of saving money and achieving financial freedom. In this chapter, we’ll be discussing more in-depth the various items to include in a budget and how you can go about calculating your own budget. But now you’re probably wondering: What should be included in a budget? In the previous chapter, we discussed what a budget is and how to create your own budget. If you’re making a budget, congrats! For many people, having more money seriously adds to their freedom - and budgeting is a great way of giving yourself as much financial freedom as possible in the future, as well as improving your financial situation in the present.