Many consider the family budget template a useful tool only for those who are facing financial problems and have difficulty spending only what they earn. But a budget spreadsheet is bigger than that.
A budget spreadsheet is the basis of your planning. It allows you to transfer dreams into the real world. Without budgeting and planning, your dreams will only exist in your head.
All big fortunes, big companies, big projects, and even governments that represent entire countries start the year with a budget. They don’t do this because they are big. It is just the opposite. They become great with tools that allow them to plan for the future.
Here is what you should do every year: Plan your future. No one is going to do it for you.
A free budgeting spreadsheet helps you plan how much you plan to spend each month of the year on vacations, health care, education, food, housing, and more.
After budgeting for each expense, fill out the spreadsheet and check each month how much you actually spent.
How to make your own budget spreadsheet?
The idea behind a family budget spreadsheet is to get a handle on your finances. The first step is to record your recurring and occasional expenses.
Fixed costs include electricity, water and gas bills, condominium and rent, children’s education, and food. Sporadic expenses include rest and clothing.
The next step is to add income and find out which category it falls into. This includes salaries, pensions, or other forms of income. That’s it, add up all the expenses separately.
If you know your total income and expenses, you will see that the amount you entered for the month is enough to cover all your expenses.
If your expenses exceed your earnings, you will have to redo the math and prioritize. Also check if you can eliminate some costs or reduce others. The budget spreadsheet is simple:
Create a table where each row corresponds to a type of income – salaries and other income, all equal to “a”.
Do the same to calculate what you get out each month. List the expenses with bills, food, transportation, health insurance, education, leisure, in short, with everything that is a cost.
It is difficult to cut some costs such as education, health, and diet. However, for example, electricity, water, telephone and Internet bills can be reduced more easily.
Other goals that can be met with family planning?
Budget spreadsheets are also great for those who want to invest. When you know exactly how much you are earning and how much you are spending, it is much easier to optimize your financial life.
Depending on your financial goals, it is interesting to set aside a fixed amount or percentage of your salary every month.
If you have a goal to reach, it is very important to work hard to achieve it. If you plan to travel abroad, buy a car or retire, for example, before you are 20, you should include the investment in your spending schedule.
You can start by setting aside 10% of your salary to invest every month.
You also need to create an emergency reserve. Ideally, it should have an amount equivalent between 6 and 12 months of your monthly spending.
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