How Do I Create a Budget Calendar?
- 1). Write down your take-home income. Beside it, list all your regular expenses, including all bills and contributions to investments or savings plans. Also include an estimate of all varying amounts, such as groceries, entertainment, gifts, haircuts or pet care. Attempt to make the figures balance so that your take-home pay is equal to all of your expenses. If you have money left over, you may want to increase a debt payment or add to your savings. If your expenses are more than your income, you may want to reduce your entertainment spending or your savings plan contributions. Discuss with a financial adviser what course is best for you.
- 2). Write your total income amount, and your total expense amount, in the top left-hand corner of every page of your monthly planner. This will reinforce the idea that your budget must remain balanced. Write down on the top right-hand corner the amount you have budgeted for each of your discretionary expenses, such as groceries and entertainment.
- 3). Write down the amount of your take-home pay on the dates you are paid every month. Write down the due dates and amount of all bills. For each bill, write down a reminder note five business days before the bill is due to remind you to pay it. Also write down the dates of any automatic payments that are made to any savings or investment accounts. If you make these payments manually, write down the dates you plan to make the contributions as well as a reminder note five business dates before.
- 4). Write down all of your spending on the calendar every day. This includes coffee drinks, clothes shopping, groceries and any other expense that comes out of the varying amounts that you have budgeted for and fall into the categories listed on the top right-hand corner of your page. It is a good idea to take a small notebook and pen with you during the day to keep track of the money you spend. When you write down the day's expenses on the calendar, also deduct the amounts from the expense categories on the top right-hand corner of the page. This way, you are keeping a running tally of how much you have left to spend in each category.
- 5). Repeat this process every month and adjust as needed. It's advisable to have an emergency fund for unplanned expenses, in addition to your savings. Use your judgment as to how you want to use any money leftover in your discretionary categories. An additional savings contribution is a good idea, as is an additional debt payment. You may also wish to leave the money available for next month. For financial advice, speak with someone at your bank or financial institution who is qualified to give good financial advice appropriate to your situation.