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Step 1
Create a budget using Excel or any other spreadsheet. If you do not have a spreadsheet program, Google has a spreadsheet you can create online. In the far left column, list all of your monthly mortgage, rent and utility bills. Include any insurance payments and car payments you must make. Below this, add a row for groceries, miscellaneous and items such as home repair and car repair. In the top row, enter dates from today’s date (the date you are creating the budget). You can enter them weekly, daily or monthly. It is recommended that you enter weekly dates, preferably Mondays or Saturdays. Make at least a year’s worth of weekly dates, working from left to right across the spreadsheet.Label the first row below the dates as “Carry Over.” Just below the carry over row, enter the net household salaries. If there is more than one salary coming into the household, you can either combine them or enter them on separate lines. If you enter them on separate lines, set the spreadsheet to add them together and total them. Have the spreadsheet add the carry over number to the salaries. This is the amount of money that is spendable each week.
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Step 2
Set the bills and debts to add themselves. This number will be entered just below the last row of the household bills for each week.
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Step 3
Skip a line. Set the spreadsheet to subtract total bills paid that week from the total income. This number is the amount of money left after paying all the bills and doing all the shopping you need to do each week. This number should be copied into the next column in the cell marked as carry over.
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Step 4
Enter the known numbers for all the dates. If you get paid the same amount each week, enter that number in the row marked ‘salary’ across the spreadsheet. Enter the mortgage on the date closest to the day you pay the mortgage. This is a number that most likely does not change. If the mortgage is due on the first of the month, put the payment in the spot for the date closest to and prior to the first of the month. Repeat for all bills that are the same every month.
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Step 5
For bills that change from week to week, such as groceries, enter a number that you can live with each week. If you figure you need $150.00 each week for groceries, enter that number. Do not enter a smaller number, as it will be much easier to break the budget. Always enter realistic numbers. For utilities and other bills that you are required to pay each month, but may change, enter an average of the monthly bill.
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Step 6
Leave things such as home repairs, car repairs and clothing blank. You will enter these items as they come up.
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Step 7
Each week, go through and enter the amount you spend on weekly living expenses. If you know you budgeted $150.00 for groceries that week, do not go over that amount. Once you return from shopping, enter the exact amount you spent into the budget.
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Step 8
Look at the budget every day. The way this budget is set up, you will be able to see how much money you are saving every week by looking at the carry over number. This will encourage you to stick to the budget.
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Step 9
Each time you blow the budget, highlight that cell in a bright color that you cannot miss. This will remind you that you went over the budget, and that you must spend less on that commodity next week. If you spent $175.00 on groceries this week, you are only allowed to spend $125.00 on groceries next week.
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Step 10
For each item that you spend money on that is not budgeted for in this spreadsheet, highlight in a different color. These are things you need, but you don’t purchase them every week (i.e. air conditioning repair, kids school clothes). The spreadsheet will tell you if you are able to afford to spend that extra money that particular week. When you enter a number for a repair or a special purchase (do this prior to making the purchase), check ahead for at least two months to be sure the spreadsheet does not hit a negative number. If the spreadsheet does not go negative, you can afford to make that purchase. If the spreadsheet shows any negative numbers, you must wait to make that purchase, or plan to have an extra source of income to cover that purchase.
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Step 11
Review your spending habits and document them into the spreadsheet every week. Being able to see exactly where your money goes, and how much you have left after making the monthly bills and buying groceries, gas and other necessities will encourage you to stick to this budget.
