How to Make a Budget Worksheet to reduce Debt

A budget worksheet can help you reduce debt by seeing where your money is going. Use a financial worksheet to budget your spending and allocate your finances towards paying down high interest debt.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Paper
• Pen
• Computer
• Printer
• Debt sheet
• Expense and Income

1. First take a sheet of paper out and list as many budget categories starting with income first and then debt expenses on your worksheet.

2. Income includes salary, commission, bonuses, pension, retirement, investments, real estate, stocks, or other family business earnings on your budget worksheet.

3. Fixed Debt which includes interest bearing accounts, credit cards, loans, savings, etc. make up the next category on your budget worksheet.

4. Fixed debt examples are mortgage loan payments, contributions to savings and credit loans. Most credit debt requires a minimum payment budget but can be payed on a set schedule on your worksheet if no more charges are made.

5. Prioritize your other debt categories by need next on your worksheet with basic budget necessities like food, clothing, utilities, auto fuel and maintenance first.

6. Next make a budget category called savings and discretionary spending and allow yourself a set amount depending on what you have left after paying your other debt.

7. Be detailed and include all other forms of debt under this budget worksheet category and write your projected amounts under each expense.

8. Balance and adjust discretionary budget income on your worksheet and use a portion of the remaining amount to pay towards high interest credit debt and save some for emergency liquidity.

Resources

• Printable Budget Sheets
• Free Printable Budget Template

[MaryKBrennan]

on 9/14/2009 Very easy to follow steps. A must for every household.