These tools come fully equipped with fields for your income and expenses in a wide range of categories. The easiest and most efficient way to set up a budget is to use a premade spreadsheet in Excel or Google Sheets (many sources offer free versions), or via a handy mobile application. Select Your Budget Template or Application Categorize your expenses and designate spending values.ġ.Establish a list of your monthly expenses.Collect all your financial paperwork or electronic bill information.Select your budget template or application.Getting started with a budget plan is as simple as following these 6 steps: This process allows you to do things like establish an emergency fund, create a savings account for a big purchase, or invest in your financial future without guesswork. With a budget at your disposal, you can easily plan for and track how much money you will spend and save each month. The Importance of Starting a Budget PlanĪlthough creating your own personal budget might sound like a drag, doing so will help you keep your financial health in tip-top shape. A budget is simply a tool that is designed to help you reach your financial goals, and that means your unique budget doesn’t have to be overly restrictive to work.
When people hear the word “budget,” they automatically think about restricted spending or being “broke.” Fortunately, establishing a monthly budget doesn’t mean you have to hoard all your money or cut back on spending drastically. Variable expenses typically include things like gas or groceries, as well as “fun money” for things like restaurants, clothing items, or non-essential shopping. Simply put, a budget shows how much money you expect to make each month and compares it against your fixed and variable expenses.įixed expenses typically include things like your rent or mortgage, car insurance, and phone bill.
What is a budget plan?Ī budget plan is a comprehensive summary that tracks and compares your income and expenses over the course of a month. Below, we will debunk common misconceptions about personal budgets, as well as teach you how to make a budget plan from scratch while providing you with tips on how to stick to it. Whether you are just getting started in your career or you’re simply looking to manage your money responsibly, this guide from Landmark National Bank is here to help.
But just how do you go about setting up a budget? And how do you stay motivated to stick to it? From staying prepared for a potential layoff to reaching important financial goals, creating a budget is the first step to establishing financial security and stability. Making a personal budget plan has never been more important, especially on the heels of the pandemic.
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