How to Make a Balance Sheet of Monthly Spending

Keeping a balanced budget will help keep you debt free.

Money management is an important skill to have. Knowing how to make a balance sheet of monthly expenses will help you keep your spending in control. Balance sheets can be made and managed with various computer programs, on paper worksheets or in a traditional paper ledger. Whichever method you choose, maintaining a monthly balance sheet will help you keep track of your expenses.

Things You'll Need

• Money management software or pencil and paper
• Printer
• Calculator

Instructions

1. Create or download a monthly balance sheet. You may purchase or download a money management software suite such as Microsoft Excel, Apple Numbers or the free-to-use OpenOffice Calc. These programs are equipped with preconfigured balance sheets, easily edited to fit your needs. If you prefer paper, you may download and print a premade balance sheet, or you may create your own sheet by hand in a notebook or ledger. Each choice is equally valid, and regardless of the medium you choose, the method for balancing your monthly spending will be the same (see Resources section).

2. Fill out your monthly income information, including any social security or other aid you may receive separately from your normal income. Estimate, to the closest dollar amount, values you're unsure of.

3. Fill out all your monthly housing expenses, including rent, utility and cable bills, along with maintenance fees. Then fill out your monthly automotive expenses, debt repayment amounts, family expenses and general or miscellaneous expenses -- estimating again to the closest dollar amount for any variable or unknown fees.

4. Use a calculator to total up the amounts for each section, then write the individual totals in the provided slot at the end of each category.

5. Write the total for each individual category again in the "Monthly Spending" section on the last page of the worksheet, then use a calculator to add up your total monthly spending.

6. Subtract your monthly spending total from your total monthly income to arrive at your surplus or shortage numbers for your monthly budget.

Tips & Warnings

• If you find yourself spending more than you make, look at the general-spending category for places you may be overspending, such as eating out or coffee and cigarettes, and make an effort to reduce those numbers.

• If you do your financing on your computer, back up your data -- or print out physical copies of each monthly report -- to ensure that your records are safe in the event of hardware or software failure.

References

• Money Matters: Learning to Balance your Budget
• Money Problems: Tips on Budgeting

Resources

• Social Serve: Budget Worksheet
• OpenOffice: Calc
• Microsoft Office: Excel
• Apple iWork: Numbers