How to Make a Budget for Bills on Paper

The most efficient and quickest way to make or maintain a budget is to use technology. Software manufacturers offer a wide variety of personal accounting software and spreadsheet programs for this purpose. But if you do not have constant access to a computer, the next logical option is to create a budget on paper. It is a bit more difficult to track, but a paper method does have its benefits. For example, you can post your paper budget as a reminder in a place where you look often and write quick notes to yourself when needed.

Instructions

1. Purchase a ledger book. This is a special type of journal that looks like a printed spreadsheet with ruled lines. Before computer programs, this is how many people and companies managed finances. Flip to the first page and write the month and year at the top, using a pencil.

2. Write down the names of all your creditors in the first column of the ledger. Enter the due date for each bill next to each creditor name as well. Write in your miscellaneous bills, such as groceries, entertainment, gas and other needs at the end of the list.

3. Write in the projected amount of each bill due for the creditors in your list next to each entry in the ledger book. Leave the next column blank so you can enter the actual amount when you receive the bills. This allows you to account for changes in variable bills such as electricity, phone and cable and modify your usage as needed to stay under budget.

4. Add up all your expenses to determine the total for projected expenses for the month in question. Do the same for actual expenses when you have the total for each creditor.

5. Write in your total take-home income for the month at the end of the ledger page. Deduct total expenses from that figure. Review your budget excess (more than enough income to cover bills) or shortfall (not enough income).

6. Go through your list of expenses, using a red pencil, to identify costs that you can lower for the upcoming month.

7. Flip the pages in your ledger book to write in your budget for the next month. Repeat the process each month and keep your ledger book as a record of your finances.

Tips & Warnings

• Hang your ledger book on your wall for quick reference or keep it open on your desk.

References

• Idea Marketers; The Importance of Home Personal Budget Finance; Sergio Ferreira
• Frugal Dad: Starting a Household Ledger – With Pen and Paper