Budgeting Your Way to Financial Freedom (Website Under Construction!)
If you open the attached spreadsheet you’ll find a very basic monthly budget. If you are just joining us, you’ll want to go back and read the posts prior to this one that explain what you do before you begin creating a budget, help for your budget blueprint and pre-construction of your budget.
You’ll notice when you open the attached spreadsheet that I’ve created a column for each Friday of the month. I pay my bills every Friday because in my household that’s payday. Use your own paydays for your budget. There are some weeks when I have more money than I have bills, I’ve got an overage of income and in other weeks I have more bills than I have income, I’m in the red. You’ll want to play around with your numbers until they fit neatly into your worksheet. For example, perhaps you should actually pay your car insurance the previous week or you should save some money from the first week to apply to the week that you are in the red. Your budget is a fluid document meaning that it’s something that will change (when you pay off a debt or when you save money at the store, etc). I open my spreadsheet a few times a week just to be sure I’m on track. I am posting this example so that you can see what your blueprint might look like in an excel spreadsheet prior to being modified.
This is an example I put together for a friend of mine. It’s the most basic and the easiest to work with if you are new to budgeting. You will input your categories and amounts due. This will be like a puzzle. This will give you a picture of what you owe and you’ll already have accounted for due dates when you used your monthly view of your calendar.
When I first got serious about budgeting, I had to move a couple of my bills out, pay them later than the due date. If you do this, *****BE SURE***** to call the payee and verify that there won’t be any penalties. If there are, try and change the due dates of bills such as the water bill or the cable bill so that you do not have to grow your debt through penalties or interest rate adjustments that are not in your favor. For your bills, at this time, you should only be inputting your minimum due. We’ll get to the actual budget talk once you get the format down.