Budgeting can be so confusing and complicated, it took me years to finally sit down and learn a system that worked for me. I wanted to create a budget worksheet that was simple enough that I would be able to stick to it long-term in order to really understand my yearly spending. Here is a simple way to budget that doesn’t take much effort and could be done in a matter of minutes. I hope this free budget planner helps you with budgeting finances and taking control of where your money goes.
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A Simple Guide On How To Budget
1. K.I.S.S.
Keep It Simple… Sweetheart is a great budgeting tip. Don’t overcomplicate things, I took 2-3 months to figure out where my money was going. I did not get into the finer details until I understood how much money I was spending on bills, groceries, living essentials, and nonessentials.
2. Create 2 Lists
In order to keep it simple, I created 2 lists, 1 for essentials and 1 for “other”, I still use this simple budgeting tool today. If you want to stick with it then you have to make it easy for yourself.
3. Record All Living Essentials
Record every monthly bill and essential item, for example, food, rent/ mortgage, utilities, phone, gas, and medication. An essential item is anything that you need in order to survive and no, nails or coffee is not considered an essential item.
4. Keep Your Receipts And Bills
We started shopping with cash so I would keep every receipt in a small file folder in the kitchen. Each week I would go through and write down all of our expenses in order to keep track. If you fall off the wagon, keep your receipts and do it at the end of the month. You can never technically fall off the wagon if you just KEEP YOUR RECEIPTS.
5. Stay Motivated
Keep in mind that this does not have to be forever, it can just be temporary during hard times or just wanting to get a better understanding of where your money is going. I always keep my long-term goals in mind and listen to podcasts or audiobooks to stay motivated.
6. Do What Works Best For You
Whether you prefer to use an online app, online budgeting spreadsheet, or paperback planner, there are many options to help you stay on track. I prefer to use a paperback budget planner but you should only use what is easiest for you.
Budget Breakdown Example
Mortgage: $1450
Heat + Hydro: $300
Car + House Insurance: $400
Cell Phones: $200
Internet: $90
Gas: $250
Pet Supplies: $100
Groceries + Essentials: $700
Total = $3500
Anything else that you choose to purchase would be considered a nonessential item. Once you are making more than $3500 a month then you can start to budget for nonessential items, RRSP’s and other investments. I recommend the Dave Ramsey “Every Dollar” breakdown as well as Jordan Page’s simple budgeting envelope system.
I hope this gave you a simple guide on how to budget that you will be able to stick to until you better understand your finances. There are so many budgeting templates that are complicated and confusing, which isn’t a long-term solution. Create a simple budgeting guide with these simple budgeting tips in order to truly stick to a plan.
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