![]() The New columns are for the new budget you are going to create in Step 4. To make your list, click here and use a Family Budget Planner Spreadsheet in Excel or Google Sheets.įill in the columns marked Original. For example, if you spend $600 on Christmas gifts, your monthly amount will be $50. To calculate the monthly amount you spend on these items just add them up and divide by twelve. However, don’t forget to include expenses that occur irregularly, such as property tax payments, Christmas gifts, or dental visits. Most of our spending is on a weekly or monthly basis. You will need to gather your monthly bank account statements, credit card bills, automatic debits payments, utility bills, debt payments, RRSP contributions…anything and everything you spend money on. This list will no doubt be longer than your income list. Next you need to record all of your expenses. Related Article: How to Save Money on a Low Income track your expenses However, you will have extra savings built up during your better months that you can put towards one of your goals. This may be challenging because it forces you to minimize your expenses. The last option is to build a family budget based upon your leaner months.But, you will only withdraw the monthly income you have assigned yourself. During better months this account balance will grow and in leaner months it will shrink. Set up a separate bank account for all your income sources and give yourself a monthly income from this account.If your monthly expenses exceed that amount you need to increase your income or reduce expenses. Calculate your average net income for one year and divide by 12 to get your monthly income.This just means you need to plan your budget carefully. You may be self-employed, do seasonal work, or work on commission or tips. You might not make the same amount of money each month. This is a big step towards taking control of your finances. You may already have an idea what these numbers are but it is empowering to write them down. Now that you have made a list of goals, it is time to find out where your money is coming from and where it is going. Read: How To Invest Money In The Stock Market Step 2 – figure out your income and expenses How much money do you need to set aside each month to reach your goals? Where will this money come from…your paycheck, extra income? Here is an example table you can follow Goal Now make a realistic plan to achieve your goals. Write down your goals on a chart or spreadsheet. ![]() Most people without clear goals spend their money randomly and run into trouble. Now you know what you want your money to be spent on.
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