10 Step Guide to budgeting, plus a free budget planner
Table of Contents
Whether you’re saving up for a big purchase or want to work out your weekly income, it’s important to know what you can afford. This 10 step guide will help you figure out your own budgeting plan and includes a free downloadable budget planner too!
Basic Rules Of Budget Planning
The basic rule of thumb for your income category is to take your paycheck, add any additional income (think side hustles) and subtract any necessary expenses.
If you’re like most people, you live paycheck to paycheck. You may have a little wiggle room in your budget, but for the most part, your income covers your expenses. However, there are some simple steps you can take to ensure that you’re making the most of your money and not overspending.
The first step is to figure out what your income is. Take your paycheck and add any additional income from side hustles or other sources. Then, subtract any necessary expenses, such as taxes or savings contributions. This will give you a good starting point for creating a budget.
Once you know how much money you have to work with each month, you can start allocating it towards different expenses. Be sure to include both fixed and variable costs in your budget. Fixed costs are things like rent or mortgage payments, while variable costs can fluctuate month-to-month (think utilities or groceries).
A good guide for this is.;
– Rent should never exceed 30% of your household income.
– Groceries, housing and other essentials should take up no more than 50% of your monthly income.
– Divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.12 Aug 2022
Finally, don’t forget to leave some room in your budget for fun! Whether it’s setting aside money for a vacation or just treating yourself to a nice dinner out, it’s important to enjoy your hard-earned cash. We’re Kiwi’s after all, life is sweet!
Get Clear On – What is a budget?
1. A budget is an accounting tool that allows you to track your income and expenses so that you can make informed financial decisions.
2. A budget can help you to identify areas where you are spending more than you need to, and can also help you to find ways to save money.
3. A budget is not a static document; it should be reviewed and updated on a regular basis so that it remains accurate and relevant to your financial situation.
4. There are many different ways to create a budget, but the most important thing is to find a system that works for you and stick with it.
5. Remember, a budget is a tool to help you reach your financial goals; it is not meant to be restrictive or punitive. Life is too short to be stingy. Enjoy the process.
How to create a budget
Assuming you don’t have a budget already in place, creating a budget can seem like a daunting task. But it doesn’t have to be! With Quickloans step-by-step guide and free budget planner, you’ll be on your way to financial freedom in no time.
Here’s how to create a budget:
1. Determine your income. This is the first and most important step in creating a budget. You need to know how much money you have coming in each month before you can start allocating it towards expenses.
2. Track your spending. Take a look at your bank statements and credit card bills from the last few months to get an idea of where your money goes each month. This will help you identify areas where you may be able to cut back on spending.
3.Use budget template. There are many different ways to format a budget, but we recommend using our sister companies’ free budget planner template to get started. Simply enter your income and expenses into the appropriate categories and Voila! You’ve got a budget.
4. Start following your budget. Once you’ve created your budget, it’s time to start following it! Make sure you track your spending each month so that you can see how well you’re sticking to your plan. And if you find yourself veering off course, don’t hesitate to make adjustments to ensure that you stay on track.
There are two parts to a budget: Income and Expenditures.
In order to have a successful budget, you need to track both your income and your expenditures. Your income is everything that comes into your household, whether it be from wages, investments, or other sources. Your expenditures are all of the money that you spend in a month, including on bills, groceries, and entertainment.
Creating a budget can seem daunting, but it doesn’t have to be. Start by siting down and writing out all of your income sources and then all of your expenses. Once you have a good idea of where your money is coming in and going out, you can start to make adjustments to ensure that you are spending within your means.
If you find that your expenses are exceeding your income, don’t panic! There are plenty of ways to cut back on spending without making major lifestyle changes. Take a look at where you are spending the most money and see if there are any areas where you can cut back, even by a little bit. Every little bit counts when it comes to getting your finances under control!
Once you have a handle on your income and expenditures, you can start working towards financial goals, like saving for a rainy day fund or paying off debt. Whatever your goals may be, remember that a budget is key to achieving them.
Plan Ahead When Populating Your Budget Planner
You want to plan ahead with any expenditures so you will know where you stand.
If you want to stay on top of your finances, it’s important to plan ahead for any major expenditures. This way, you’ll know exactly where you stand financially and won’t have any surprises.
To do this, start by creating a budget planner. You can use a free online budget planner or create your own. Be sure to include all of your income and expenses in your budget, so you have a clear picture of your financial situation.
Once you have your budget created, take a look at any upcoming expenses and start planning for them. If you know you’ll need to make a large purchase in the near future, start setting aside money each month so you’ll have the funds available when you need them.
By planning, you can avoid financial stress and stay on top of your finances.
Future Expense Planning
The first step in this process is putting together your future expenses list. This will
1. The first step in this process is putting together your future expenses list. This will help you identify all of the areas where you will need to budget for in the future. Make sure to include both one-time and recurring expenses in this list.
2. Once you have your list of future expenses, it’s time to start thinking about where you can cut back in order to save money. Are there any areas where you can reduce your spending? Perhaps you can cook at home more often instead of eating out, or maybe you can find a cheaper cell phone plan.
3. It’s also important to think about ways to increase your income if you want to get ahead financially. Can you get a raise at work, or start freelancing on the side? There are many ways to boost your earnings, so take a look at your options and see what makes the most sense for you.
4.Last but not least, make sure to create a realistic budget that takes into account all of your income and expenses. Be sure to give yourself some wiggle room for unexpected costs, and don’t forget to factor in savings goals as well. A good budget should be flexible and allow you to make adjustments as needed over time.
What happens if I get a surprise bill?
If you get a surprise, then Quickloans can cover your expenses with a personal loan that can be spread across 48 months. Pay it off as quick as possible to minimise interest costs. Be sure to write this into your budget planner so you can adjust your costs accordingly.
by Ash Horton
19/12/2022
Ash is a professional content writer with extensive experience in business development in the financial services. Ash has founded businesses from the age of 19, including franchising ventures, and working alongside some of the largest retailers in the world.