How to Create a Family Budget Spreadsheet
Money can be a major cause of stress for families and can negatively impact relationships between family members. Living paycheck-to-paycheck, being in debt and not having enough savings are all common causes of financial stress. Creating a family budget is the first step to gaining control over your money and allows you to see where the money is going, where cuts can be made and which areas need additional flexibility. Spreadsheets are ideal for creating budgets and tracking expenses.
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Instructions
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Label the top row of the spreadsheet. The first box ought to be labeled "Category" or something similar. Label second column "Amount" or "Budgeted Amount" The third column lists the current month while the fourth column lists next month, and so on for at least three months. You can always add additional months later.
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List income sources in the first column. Use one row above income sources to label the income category. In the second column, next to the income source, list the expected monthly income. Use your paycheck stubs to determine this amount.
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List fixed and variable spending categories in the first column of your spreadsheet under income. Leave one row blank, then label the next row "Expenses" above the spending categories. List the amount you are budgeting for each category in the second column. Fixed spending should be listed first and includes categories such as rent or mortgage payments, loan and credit card payments, insurance premiums, taxes and savings. Use your monthly bills to determine these expenses. Variable spending includes utilities, gas and vehicle maintenance, medical expenses, food and eating out and entertainment money. Use your monthly bills, bank and credit card statements and receipts to determine these amounts.
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Add the family's estimated monthly income to determine how much money is coming in each month. Add the expenses listed to find out how much money the family is spending. Now subtract the total expenses from the income.
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Make sure that the family is earning more that they spend. In addition, adjust your spending, so that you are saving for emergencies and college expenses. Finally, allocate extra money to pay off your credit cards and loans. Even an extra $50 per month above the minimum payment can drastically decrease the time it takes to pay off that debt.
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Track the family's income and spending in columns three and up. Enter the amounts in the appropriate categories. Do this weekly, if not daily, to make sure that your spending is accurately recorded and you do not forget money spent on coffee or other small expenses. At the end of the month, tally the total income and expenses for the family. Continue to adjust the family budget to make it workable with changing circumstances.
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Tips & Warnings
Be honest about your spending habits. Do not budget $10 per day for lunch if you know that you are spending at least $15 per day. Also, be flexible with your spending. While it is important not to spend more than you earn, understand that circumstances may require extra spending each month.
Don't cut all of the extras out of your budget. Set aside some money to go out to dinner or to see a movie. If you cut all of the fun spending money out of your budget, you are more likely to get fed up and quit.
Make sure that you have money saved for emergencies. Save enough money so that your family could survive if you or your spouse were unemployed for several months.
References
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