Sample Personal Budget |

Personal budget is a summary of expected expenses and income for a certain period of time. Usually, it is made for one month. Here, the aim is to make efficient spending. Therefore, in this article we will provide a sample personal budget that can be useful reference for you.

How to Write a Sample Personal Budget

There are some steps you need to follow in creating a personal budget template printable. First of all, you need to gather all financial statements. There are many financial statements you may have such as bank statements, recent utility bills, investment accounts, or any other income / expense.

Here, the key of the process of making budget is to make a monthly average for both income and expenses. Therefore, you will have good estimation even though it may not be same. It does not matter if your income is fluctuating because you are a businessman, freelancer, etc.

After that, you need to record all sources of your income. If you are an employee, you must include your salary. However, you may have some other sources of income. For example, you have an online business. Here, you should include the average income from your online business.

Sometimes, your income comes in a regular paycheck and the taxes are deducted automatically. In this case, it is fine if you use take-home pay or net income. Anyway, you must record the total of your whole income and make it a monthly amount.

Now, you can continue making a sample budget printable by creating a list of your monthly expenses. Here, you have to write down all the expected expenses planned in a month. Even though the reality can be different, however you must have a plan for expected expenses.

There are many possible monthly expenses. It depends on your needs. The most common examples of monthly expenses are such as retirement, student loans, dry cleaning, entertainment, utilities, groceries, auto insurance, car payments, mortgage payment, etc.

Still related to expenses, you can divide them into 2 categories. They are fixed & variable expenses. Fixed expenses are the expenses that relatively stay same every month & become parts of your lifestyle. For examples are credit card payments, trash pickup, internet service, car payments, etc.

On the other side, variable expenses mean the expenses that change from month to month. They may include gifts, eating out, entertainment, gasoline, groceries, etc. These expenses are very important when you adjust between the income and the expenses.

Next, you should total monthly income & expenses. If your income is bigger than your expenses, it means you have a good financial condition. On the contrary, you are in a financial problem when you find that your expenses are bigger than your income.

Adjustment is very important to make your budget balanced. Here, what you have to adjust is the expense. In making a sample personal budget, you have to keep in mind that the income & expense columns must be equal.

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