How to Make Personal Budget Planner
Having a budget in place is a vital element of your personal financial health. A budget planner does not have to be complicated or written on special paper or in an expensive book. You also don't need to have any accounting skills, fancy software or the advice of a professional to devise an effective budget. Creating a personal budget planner is free and will take less than 10 minutes of your time. Before you begin, you'll want to gather up all your financial documents, including those related to income and debt.
- Difficulty:
- Easy
Instructions
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1
List all your bills down the left side of a piece of paper. Include car payments, mortgage, credit cards, loans, insurance premiums and any other regular bills you pay.
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2
Make a list of all the bills you pay that don't occur on a regular basis. This can include property taxes, vehicle tags, renewal fees for memberships, and any other bill that you pay less than once a month. Also include vacation expenses, and holiday expenses, including gifts and party expenses.
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3
Record all your living expenses such as groceries, gas and utility bills. Also put down lunches if you work outside the home and commuting costs and fees. If you have children, list expenses for their school supplies, lunches and other items they may need. Make sure to give yourself an allowance for clothing and entertainment. And factor in any tithes or offerings for church.
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4
List your income sources on the right side of the page. While you should obviously include regular income from your job, don't forget income from any outside work you do, investments or child support. If your paycheck is variable, use the amount of your smallest paycheck.
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5
Set aside money for savings. Initially, you'll want to set up an emergency fund of $1,000. After you become more financially secure, you should set aside an amount that is equal to approximately three to six months of living expenses.
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6
Subtract the outgoing amount from the incoming amount, and use the excess to pay off debt. Start with the smallest bill first. Throw any extra money you have toward that bill. Once it is paid off, move to the next bill and continue until your debts are paid off.
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Tips & Warnings
Don't get discouraged. You didn't run up your debt in one day, and you won't be able to pay it off in one day.
