How to Make a Monthly Budget

Posted by Ian on April-1-2011 under Save Money

Creating a monthly budget is not the daunting chore it was in the 1960s and 70s. These days, thanks to the Internet, you are able to quite easily fashion your own budget in a matter of minutes. For those that still use a notebook and pencil to keep track of their household finances; it is time to move into the 21st century and make use of one of the many software applications available on the Internet. There are various applications available designed to make your monthly budgeting duties a pleasurable task rather than a dreaded chore. Applications similar to Buxfer, budgetTracker and Microsoft’s Money are easy-to-use programs that will enable you to budget wisely. Once you’ve found an application that you are happy with, the next step is to decide how to make a monthly budget that not only is useful and helpful, but also easy to use.

First of all you need to design a monthly worksheet with 6 categories.

1. A total gross monthly income chart column.

2. Home expenses for a month – electricity, gas, rent, etc.

3. Monthly transportation expenses – car, motorcycle and public transportation.

4. Monthly loan repayments – house, car, student loans, etc.

5. Miscellaneous expenses – special events, entertainment, etc.

6. Monthly take-home income.

monthly budget

With the above data in your monthly budgeting software you will be able to keep tabs on the comings and goings of household finances. Indeed, knowing clearly where money is being used will allow you to save for that proverbial rainy day. Think of the many times you’ve said to your partner, “Where the hell does the money go?” With a good monthly budget created, you’ll never ask that question again. If, after a month of using your newly created budget software, you find your utility bills are high, it is a good idea to look at ways to cut down on expenses. The following are some ideas:

  • In the winter months turn off lights and heaters in rooms you’re not using.
  • During the daylight hours, leave curtains open and let sunshine warm rooms.
  • Make sure washing machines and dishwashers are fully loaded before using.
  • Check your monthly phone bill for hidden charges and should you find any, ask yourself if they are necessary.

There are probably many other methods of saving a few dollars each month and all it takes is a little research to find these money saving ideas. Using your new budget application, you will soon notice a positive difference in your bank account; instead of money draining from the account, it’ll be increasing. It is important to note here, that keeping tabs on utility usage is not to be thought of as stingy, it is merely being sensible.

You can also check out other articles like 5 free budget planning software applications, 10 coupons websites, or how to save money on household expenses.

Creating a monthly budget is something that all families should do if they seriously want to understand where their hard earned money goes each month.




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