Whether you want to get out of debt or you want to save for retirement, a personal budget worksheet is the first step towards achieving your goals. This is a calculator to help you come up with a budget that will be realistic and manageable. Of course, not all budgets will be realistic and manageable. You may need to adjust it a little if your situation does not seem to fit.
Keep in mind, though, that if your financial situation has changed over the years, it’s possible to revise the worksheet for yourself. Also, keep in mind that you can change a couple of items here and there to come up with a budget that is better suited to your financial situation. So take some time and look at your personal budget worksheet and get ready to make adjustments to your financial situation.
If you are already on your budget, you will probably see what adjustments you can make. Otherwise, let’s review what each factor means in the worksheet. The following are the factors you’ll find in your personal budget worksheet.
Income: This section of the worksheet will include information about your gross income. Take note of the amount of money you get from work, how much money comes from investments, and what your pension is. As an example, your pension may be zero if you are self-employed, but it might be more than $60k if you are retired. Your gross income also determines your tax bracket.
Expenses: This section of the worksheet will include all of your living expenses. These are your mortgage, utilities, personal loans, insurance, groceries, entertainment, etc. Remember, this does not include debt payments such as credit cards, student loans, and other credit card debt.
Other expenses: This includes other expenses such as car payments, groceries, gas, etc. Note that this category includes things like credit card bills. If you have another category for these bills, you will be asked to make them here. This is because they may not be important to your financial situation.
Total monthly expenses is where you will record all of your monthly expenses. Some categories that will show up here are food, utilities, entertainment, and personal loans. When determining your monthly expenses, make sure to subtract your expenses from your gross income.
As you can see, it is easy to use a personal budget worksheet to help you keep track of your finances. Once you have set a budget, remember to monitor it each month and if necessary adjust it to be more realistic.