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All expenses are divided into two main types – unmanaged and managed. The first category includes utility payments, payment for a mortgage or apartment rental, internet, various transportation expenses (gasoline, travel card). Unmanaged costs are a category in which there is nothing to reduce. If you, for example, try to save on gasoline, someday you will remain without a vehicle. All expenses for unmanaged expenses are necessarily put in the budget.
The quite another matter is managed costs. This is something that you can reduce as you want. Managed costs should be specified, dividing them into categories. For example, if you spent a great part of your budget on sweets and other weaknesses, next month you can limit these purchases. Another category, which takes a lot of money – entertainment. You like going to the movies? Well, do not save on this, but it’s better to refuse popcorn, and maybe it’s worth visiting earlier and cheaper sessions. Doing sports? Think about whether it is worth spending a lot of money on a fitness club or you can practice at home, by yourself. Similar expenses are also evaluated according to this principle.
There are three different ways how to budget money. Let’s consider each of them!
Method #1: Notebook
The classic method of managing household expenses. All the expenses here must be written down on paper, using a regular notebook or diary. This is the easiest way – you do not need to download and understand the programs and applications, at any time you can take a notebook and write down all the necessary information. From the main disadvantages of this method is the absence of “how to budget my money calculator”, so all the calculations have to be done manually, and this takes a lot of time. Statistics will be also difficult to maintain – for example, if you need to check data for a certain period.
Method #2: Excel
The second way of how to budget your money effectively is using Excel money budget template. Unlike in the previous method, in this case, if I decide to budget my money, the calculator will do it automatically. All the tables of expenses and incomes can be divided into categories. You can also check statistics for several months, create graphs and charts.
To manage the household expenses in Excel, you can use the standard “Income, expense, balance” money budget worksheet or use built-in or downloaded from the Internet, templates.
Method #3: Programs and applications
Many of us think that tracking of all expenses and incomes takes a huge amount of time. If you stick to the traditional way of counting and write down all the information in a notebook – perhaps it’s true. Nevertheless, with the advent of new technologies, keeping records has become much easier. The third answer to the question “how to budget my money properly?” is to use special apps. In this case, all you need is a mobile phone, tablet or computer.
One of the popular programs to budget money is the Cubux app. This money budget calculator has many different features. You can not only keep records of incomes and expenses but also set certain goals. At any time, you can check the graphs and indicators of your financial efficiency. The Cubux app is available via a smartphone, tablet, and computer.
This app is free, has a user-friendly interface, is easy and understandable even for the beginner. You can synchronize your account on multiple devices. So, for example, I can not only budget my money but do it together with my family members.
The only thing you need to do is to form a habit of recording all your incomes and expenses in the how to budget money worksheet.
Managing finances is an interesting and useful procedure. You will understand this when you analyze your financial situation and see the first results in the “how to budget my money worksheet”, saving a significant money amount after several months of accounting.