#Monthly credit card expense spreadsheet how to#

Remember to account for variable costs for whatever budgeting tool or timeframe you use. Some people manage personal finance on a weekly budget, while others prefer to plan out a budget for the whole month. When you’re new to creating a budget, the 50-30-20 rule is a simple budget template that can help you stay organized. The final 20% should be allocated to long-term savings like retirement savings, and to pay off debt. The following 30% goes toward your “wants” or discretionary spending, like dining out, travel, concerts, and shopping. The 50-30-20 rule says that 50% of your income should go to necessities like living expenses, groceries, transportation, utilities, and insurance.

#Monthly credit card expense spreadsheet how to#

After you’ve compiled your expenses, however, you may look more closely at your spending habits and adjust where you feel they’re needed.įor a simple breakdown of your expenses, consider the 50-30-20 rule for how to budget money.

There shouldn’t be any judgment, nor should you feel the need to eliminate or cut out anything right now. Then, consider other flexible expenses you may have, things like monthly subscriptions or getting a haircut.Īll you need to do at this phase is make a comprehensive list of your expenses and spending. You’ll also want to account for variable expenses like groceries, dining out, and entertainment. Start with fixed expenses: housing, utilities, insurance, debt payment or student loans, and any other monthly expenses that are fixed costs, like a car payment. Now that you know your monthly income, the next step in creating your budget is focusing on your expenses. Once you’ve calculated your monthly income, you’re ready to create a budget. If that’s the case, calculate your earnings over a few months to get an idea of your average earnings. However, your monthly income might fluctuate if you own a business or work as a freelancer or gig worker (like driving for a rideshare or delivery service). For most people, monthly income is relatively consistent. For budgeting purposes, you’ll likely want to base calculations on your net income because you’ll pay most of your bills after deducting taxes. If you don’t know how much you make each month offhand, check your paychecks from your employer or any invoices you’ve sent to clients, for example. That’s the amount of money you earn each month from a full-time or part-time job, your side hustle, or another income source. Calculate your monthly incomeīefore you get fancy with budgeting templates or apps, it’s essential to understand your monthly income. Learning how to create a personal budget or reach your savings goal - even for the first time - only involves a few simple steps, and you’re in charge every step of the way. You can create a budget using pen and paper, a spreadsheet, or with a budgeting tool like a budget calculator or budgeting app. Remember to account for possible interest charges from your credit cards unless you have a card with 0% APR. Your budget can be as simple or elaborate as you want. At first, glance, creating a budget can seem complicated and overwhelming. If you’re wondering how to set up a budget, you’re not alone. It’s designed to serve as a roadmap to reach your desired destination. A budget is a simple tool to tell your money where to go so you can create the life you want.Įssentially, a budget is a spending plan that accounts for your income, expenses, and goals. Here’s the deal, though - creating a budget doesn’t have to be restrictive, nor does it mean you’re stuck eating rice and beans for dinner every night (unless you want to!). The word “budget” may leave a sour taste in your mouth.

The good news is that you can tailor your budget to what works best for you. To get started, you’ll likely want to create a budget. Ready to take charge of your finances and work towards a financial future you’re excited about? Great. Monitoring your account, setting automatic payments, and adjusting your budget can all help you meet your financial goals. There are different budgeting techniques to help people of all lifestyles pay bills on time and save money. Before you create a budget, figure out your monthly income vs.