You won’t have to worry about ending up with “leftover” cash and having to decide what to do with it. If you split 100% of your income across your spending categories - 50% for needs, 30% for wants, and 20% for saving/debt repayment - you’ll know exactly what happens to every dollar at the end of the month so you can feel confident you’ve put all your money to good use. Why you should budget your whole incomeīudgeting all of your income is a strategy known as zero-based budgeting and it’s a good way to use your money more efficiently. If you budget all of your income (which you should), these two fields should be the same. your income subtracts how much you’ve spent from your total monthly income. your budget subtracts how much you’ve spent from how much you’ve budgeted or put into the different budgeting fields. There are two fields for your actual spend: one that compares your spending to your budget and one that compares your actual spending to your overall income. If you’re over budget, look for ways to save money and cut your spending. The “Actual Spend” boxes will be green if you’re under budget or red if you’re over budget. Once you’ve entered all the values, the spreadsheet will tell you how much you have left at the end of the month. What if you don’t really know how much you spend? No worries, just use your transaction history and bank statements to make your best guess for any expenses you’re not sure about. Use the “Leftover Income To Budget” box at the bottom of the spreadsheet to see how much of your total cash you haven’t yet allocated to a budget category (make sure you’re using all of your income!).Track your actual spending throughout the month in the “Spent” column.Add any categories we missed in the “Other” rows.Fill in the blanks for your monthly expenses by putting your typical costs in the “Budgeted” column for each category.
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