How to Create a Working Budget

Source: wikiHow

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In this Article:Article SummaryCreating Your Own Budgeting SpreadsheetUsing a Budget AppModifying Your Budget as NeededCommunity Q&A10 References

Budgeting is a great way to see where your money goes each month. Plus, it also lets you cut back on your spending if you’re outspending your income.

A good budget restricts your spending to an amount lower than your total income. So, whether you’re trying to get out of debt, saving up for a big purchase, or just aiming to have a better understanding of your personal finances, creating a working budget is the way to go. Track your budget using a sheet of paper or spreadsheet or through a budgeting app.

1. 1 Use a pre-made budget worksheet for an easy option. If you’d rather not add functions to your own spreadsheets, try using one of the many pre-built budget worksheets online. Worksheets list types of fixed and variable monthly expenses, and many already contain addition and subtraction functions to calculate your budget for you.
   • Online pre-made worksheets can also be customized for college students or self-employed professionals.
   • You can access a number of free budgeting worksheets online at: https://www.mint.com/budgeting-3/monthly-budget-template-track-your-spending-by-month.
2. 2 Watch your budget with a spreadsheet for a technological alternative. A spreadsheet has the additional benefit of being able to tally your monthly income and expenditures. Name rows for different types of fixed and variable expenditures. When setting up your budget spreadsheet, use the “sum” and “subtract” functions to add up your total expenditures and subtract these from your net income.
   • If you like, break down sub-categories within expenditure areas like “food” or “entertainment.” For example, you could have “restaurants,” “bars,” “take-out” or “movies,” “concerts,” and “theater.”
   • Or, you could use multiple spreadsheets each month. For example, 1 could be only for fixed expenses, another for variable expenses, and a third for your various sources of income.
3. 3 Track your budget on a sheet of paper for a simple option. Write “total net income” at the top, followed by the amount. Then, use a separate row to track your…

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