![]() So if you have struggled with budgeting in the past and just want a simple solution that works, definitely check it out. It is a simpler, easier, and more effective alternative to traditional budgeting. And I struggled to find anything that worked for Linda and I until we discovered the Real Money Method. Long story short, I have been testing out budgeting apps, software, and spreadsheets for the last 13 years (I know pretty nerdy). If you have a spreadsheet that you have built or have found (that is free to distribute) please provide a link to it in the comments below. Some may also work with Google Docs, but I have had bad luck with some of my imports into Google Docs.Įach of the budgeting sheets below have their own strengths and weaknesses, so give try them out, see what works, and make tweaks and changes if necessary. One of them might be just enough to get your spending back on track.But whether you like to create spreadsheets or just like to use them, we have a lot of good options for you!Įach one of the sheets below are free and are designed to be used with Excel, but will more than likely work if you use OpenOffice (basically a free version of Microsoft Office). If you want a little more structure in your financial life - but don’t want to overcomplicate the budgeting process - give these approaches a try. If you look at your spending and see, for instance, that you’re dedicating a whopping 70 percent of your income to shelter, food, utilities and other needs, your budget is out of whack and something else (likely your savings) is probably getting shorted each month. ![]() The idea behind this budgeting concept is that you’ll stay on target if you simply separate your spending into just three “big picture” categories: 50 percent for needs, 30 percent for wants and 20 percent for savings. However, the clincher is that when the money runs out, you’re done spending for the month, which can take some getting used to. Under the 80-20 plan, you don’t need to divide the money up into categories. ![]() That’s the amount you have to spend every month on your regular purchases - groceries, water and electric bills, gas for your car, lunch money and everything else. Another way to simplify your budget involves depositing the first 20 percent of your take-home pay into an investment account - the “don’t touch it account.” Stash the other 80 percent in a checking account. Fun activities, such as dinners out and movies.Short-term savings for more erratic expenses, such as gifts and repairs.Long-term savings for big goals (other than retirement) that require some planning.The remaining 40 percent is broken up into four equal budget categories: Necessary expenses, such as your mortgage, groceries and insurance, automatically get 60 percent of the family’s take-home pay each month. One simple approach is to break spending into only five categories. Try these three solutions for simplifying your budget: Micromanaging your money can get messy, and if you’re not careful, you’ll wind up driving yourself crazy. There’s a lot to be said for simplicity, especially when it comes to your household budget. Does each family member need a clothing category in the budget, or can you lump everyone’s clothing expenses into a single bucket? Should you separate the non-food items you buy at the grocery store into their own sundries category, or is that overcomplicating things? That’s all well and good, except when the details of your budget get too complicated. When all’s said and done, you should have your expenses covered each month without racking up any debt - hopefully with a little money left over to put into savings. The standard approach to building a household budget is fairly simple: Know how much income you have available to spend each month, determine how much money goes into each spending category (groceries, utilities, housing and so on) and then track these categories regularly to make sure you’re not overspending in one place.
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