![]() Subtract the total expenses from the total income to calculate your net income (Income – Expenses = Net Income)Ĩ. Total the income category and total the expenses category.ħ. For instance, if your homeowner’s insurance is paid yearly, divide that annual cost by 12 to obtain the monthly amount.Ħ. For expenses that occur more or less often than monthly, convert the annual amount to a monthly figure when calculating the monthly budget amount. Use your checkbook, bills and receipts for the last two to three months to average how much you are actually spending per month on the budget categories listed.ĥ. Calculate your average monthly income including net employment income, spouse’s income and all other sources of income.Ĥ. Add and delete categories as they apply to your specific earnings and spending habits.ģ. Look over the worksheet categories and amend them to fit your income and expenses. Start by printing the Budget Worksheet HERE.Ģ. Creating a budget can take a couple hours, but it doesn't have to happen in one long marathon session.ġ. Feel free to work on part of the budget one evening and finish the next night. Developing a budget is serious business, and a workable, realistic budget is the key to helping you meet your financial goals.īe prepared to sit down with your financial records, a pencil, a calculator, some scrap paper and plenty of patience. ![]() It’s one powerful piece of paper (or online program)!Ī basic budget shows you how much money is coming in, how it’s being spent and how much you have left over at the end of the month (and hopefully you have some left over). Listen to what it “says,” and you will know what you need to do in order to live comfortably within your means. It is like a best friend that wants to help you become debt free and achieve financial freedom. If you don’t have one, you need one – now. One of the best ways to stay on track with your financial goals is to create a household budget.
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