Budgeting has always been one of the most difficult tasks. Most people assume that budgets restrict your daily use of money, so they avoid the budgeting practice. In reality, budgets can help people stay grounded in financially troubling times and guide us in the right path to financial freedom.
Your own personal budget worksheet is a must have for every individual. Just like how we adapt our style to the changing fashion trends, it is also imperative to adapt our money management strategies according to current economic conditions. A personal budget calculator is easy to make and can also be downloaded from online sites for free.
Some advice when making a personal budget calculator
Start from your expenses: List all possible cash and online bill payments that are to be paid every month. Divide them into static and variable.
Income category: List all sources of income. When making a monthly budget, income from assets or investments need not be included. But, if for a large scale purpose, best to adopt an online money management tool. These tools help derive data from different bank accounts and are also capable of providing a comprehensive picture about the current financial status (some of them offer mobile alerts and investment tips too!) It is easier tracking bill payments with these tools (they even send reminders to avoid late fees and extra charges).
Worksheet: An excel sheet is sufficient to work out small budgets. Using simple formulae provided by MS excel, it is easy to workout monthly balances.
Combine Incomes: Assuming there’s more than one earning member in the family, it is advisable to merge both income-expenditure into one worksheet to assess the correct financial status.
Savings: Make sure to make a mark in places where actual expenditure is more than the allocated one. This will help when we analyze the reasons for sudden increase in the outflow of money.
Going by global financial meltdowns, it is imperative for professionals to start saving their funds intelligently. Pushing money into bonds and property can help overcome future credit positions. And lastly, it is important to monitor credit scores to safeguard our financial position.