Are you trying to regain control of your financial future? A monthly budget template will help immensely in that process.
Our team has created a successful budget template to help you get off to the right start. It’s available to download in Google Sheets, Microsoft Excel, or PDF format.
When you use the Google Sheets or Excel version, you’ll also notice it has all the formulas set up for you when you input numbers in each category. That way, you don’t have to juggle all the numbers manually. It’ll simply outline your income, expenses, and money left over each month for easy decision-making.
Click the respective links below to download the template immediately in your form of choice.
Once you’ve downloaded your free monthly budget template, don’t just stop there. Read the rest of this article, where we’ll cover how to get started with a monthly budget and maximize its potential.
Benefits of Using a Monthly Budget Template
First, let’s discuss exactly why you should use a monthly budget template or create one on your own. Here are the three main reasons.
1. Simplifies Financial Management
Your monthly budget will simplify your financial management. It’ll give you estimates for your:
- Overall earnings
- Overall expenses
- How much money you have left over each month
With that money you have left over, you can set goals to optimize your financial future. Do you want to set up an emergency fund? You’ll know how much money you have available to work with each month. The same can be said for other use cases like paying down debt, saving for a home, or starting a college fund for your kids.
A monthly budget will help simplify it all.
2. Track Income and Expenses
Nowadays, many people have multiple sources of income. It’s also pretty common to have many types of expenses, like healthcare, credit card bills, home expenses, and much more.
You should be tracking all of that in a budget to know what kind of situation you’re working with.
For instance, it may help you find recurring expenses like streaming services or unnecessary insurance that you can cut out to save more money.
It’s a good idea to be organized and update this budget regularly.
3. Encourages Saving and Investment
A monthly budget and writing your goals down will also encourage positive saving behaviors.
It’s a good idea to have realistic estimates for how much you can save each month. That way, you think before spending and remember how to stay in line with what your current financial situation allows.
For example, your monthly budget could be why you decide to pass on that new pair of shoes you were considering buying because you remember you wanted to set aside $200 each month for your kid’s college fund. It all adds up to helping you achieve your financial goals.
Can I Create My Own Monthly Budget Template?
You can create your own monthly budget template. While the one our team set up is a great start, we can’t possibly account for every person’s financial situation. Therefore, downloading and editing the one we listed above or creating your own from scratch can work well to provide you with a solution that fits your needs.
Here are four steps to consider to set up an effective template.
1. Choosing the Right Tool or Format
Before setting up a template, choosing the right tool and format will be important.
Many people will find they prefer Google Sheets because you can save it on your Google Drive and access it pretty much anywhere. You can even get the Google Sheets mobile app to keep your budget readily available on your phone.
Plus, an option like Google Sheets or Microsoft Excel will allow you to put functions in place so everything about your budget can be automatically added or subtracted. It makes it much faster to calculate your overall income, expenses, and the money you’ll have left over.
Otherwise, if you’re old school and like to write everything down, you can all create a printable PDF that you can fill out by hand.
Choosing a Budget App as an Alternative Option
If you’d like to go a different route than a manual spreadsheet, there are also many great budgeting apps that can help. Some popular options include:
- Mint: This one’s a unique solution because it allows you to track your income and expenses on the go. Then, at the end of the month, Mint will calculate how much you earned and spent and provide detailed recommendations about how to improve your financial situation. Plus, this is all available to you for free.
- YNAB: If you’re looking for a budget app that allows you to plan ahead, many people will find that YNAB is their preferred choice. This one helps you track all your estimated income and expenses while helping you prepare financial goals. Do keep in mind that YNAB comes at a cost of $14.99 per month or $99 per year.
- Empower Personal Wealth: Those who want to account for their investments, 401(k)s, and IRAs within their budget will appreciate this option. It can provide you with a full income and spending snapshot while helping you optimize your investment strategy at the same time. Plus, Empower Personal Wealth is free to use.
- Honeydue: Do you want to budget with a spouse or household partner? Honeydue is a great free option. Honeydue allows both partners to sync bank accounts, credit cards, loans, investments, and personal expenses all in one place. It provides well-structured insights for dual-income households while making everything easy to manage.
Overall, you can’t go wrong with any of these apps, and they’ll certainly help you simplify your budgeting strategy if you choose to go this route.
2. List Your Income Sources
Once you’ve chosen the right tool and format for your budget, it’s time to dig into your income. You’ll want to do a thorough analysis to ensure you account for all the money you have coming in each month. Some common income sources people will list include:
- Employment Income
- Self-Employment Income
- Investment Income
- Rental Income
- Business Income
- Royalties
- Pension Income
- Social Security Benefits
- Annuities
- Alimony
- Child Support
If you have any income from other sources outside of this list, don’t hesitate to include that within your budget, too.
3. List and Categorize Your Expenses
This one isn’t as fun. Some people even find listing out their expenses to feel a bit overwhelming. That said, it is important to do a thorough overview of what you’re spending money on each month to find the right solutions and strategies for your needs.
Here’s a thorough breakdown of common expenses in different categories.
- Housing Expenses:
- Rent or Mortgage Payments
- Property Taxes
- Homeowners or Renters Insurance
- Utilities (Electricity, Water, Gas)
- Transportation Expenses:
- Car Loan Payments
- Fuel and Gasoline
- Auto Insurance
- Maintenance and Repairs
- Public Transportation Costs
- Food and Groceries:
- Grocery Shopping
- Dining Out
- Takeout and Delivery
- Healthcare Expenses:
- Health Insurance Premiums
- Doctor’s Visits and Co-Payments
- Prescription Medications
- Dental and Vision Care
- Debt Payments:
- Credit Card Payments
- Personal Loans
- Student Loan Payments
- Other Loan Obligations
- Utilities and Communication:
- Internet and Cable
- Mobile Phone Plans
- Landline Phone Service
- Insurance:
- Life Insurance Premiums
- Disability Insurance Premiums
- Long-Term Care Insurance
- Education Expenses:
- Tuition and Fees
- Books and Supplies
- Education Loan Payments
- Childcare and Education:
- Childcare Costs
- School Tuition and Supplies
- Entertainment and Recreation:
- Streaming Services
- Hobbies and Activities
- Gym Memberships
- Movie Tickets and Events
- Savings and Investments:
- Retirement Contributions
- Emergency Fund Savings
- Investment Account Contributions
- Clothing and Personal Care:
- Clothing Purchases
- Haircuts and Personal Grooming
- Taxes:
- Income Taxes
- Property Taxes
- Sales Taxes
- Home Maintenance and Repairs:
- Repairs and Renovations
- Lawn Care and Landscaping
- Charitable Contributions:
- Donations to Charities and Nonprofits
- Travel Expenses:
- Vacation Costs
- Airfare and Accommodation
- Insurance Deductibles:
- Deductibles for Health, Auto, or Home Insurance
- Legal and Professional Fees:
- Legal Advice and Services
- Accounting and Tax Preparation Fees
- Gifts and Special Occasions:
- Birthday and Holiday Gifts
- Wedding Expenses
- Pet Expenses:
- Pet Food and Care
- Veterinary Bills
- Homeowner Association (HOA) Fees: If applicable.
- Car Registration and Licensing Fees: Vehicle-related expenses.
4. Setting Realistic Budgeting Goals
When it comes to budgeting and building positive financial habits, it’s important to remember that you should go easy on yourself. Budgeting on “hard mode,” where you cut back too much or limit fun activities you can participate in, will start to make this feel like a drag. That’s where many people can get off track.
Don’t be afraid to set aside money each month for some “fun expenses.” That way, you can rest easier when taking your spouse out to that nice dinner or joining your friends on that weekend getaway they invited you to. Unless you’re in seriously dire circumstances, your budget doesn’t have to limit you to staying home every night or always eating chicken and rice for dinner.
And if you slip up, be kind to yourself. You may just need to adjust your goals or get back on track. Positive habits aren’t built overnight.
Tracking and Adjusting Your Monthly Budget
After you get your monthly budget set up, it’s important to remember you shouldn’t just stop there.
You’ll still want to ensure you’re tracking your monthly income and expenses for better accuracy. Ideally, if you can keep a running document with all your finances each month, that will help a ton. Plus, it keeps your budget and goals at the top of your mind at all times.
You should also review your budget and make adjustments as needed. For instance, you may be going through your plan and realize you have more wiggle room to set some extra money aside. Then, you could adjust your budget to hit your goals even quicker. As mentioned before, the same is true if you feel your budget is too restrictive.
Lastly, you may experience financial changes over time. Maybe you pay off some credit card debt and have more money free each month to make some smart investments. The same is true about other changes like getting a raise at work or taking on a side hustle where you’re making extra money.
You’ll likely always find some new changes that impact your budget a bit, one way or another. It’s important to remain flexible here.
Tips for Successful Budgeting
To round things out, here are a couple of practical tips to keep in mind to ensure successful budgeting.
One of the main things you must stress is essentials vs. non-essentials. When planning your budget, consider the things you really need. For example, if you’re buying a lot of new clothing each month, you should sit down and figure out how much of it is essential or not. Do you really need that new shirt for work, or are the clothes you currently have just fine?
In that line of purchasing, it’s also important to think critically before buying something. We live in a world where impulse buys are common and a key part of many marketing strategies. So, even if there’s a timer running down on that deal a company is offering you, take a step back to ensure you’re making the right purchasing decision within your established budget.
The last thing to keep in mind is that emergencies happen. For example, your car could break down, your home could use some emergency repairs, or your child could have some big medical expenses come up. Building an emergency fund is a great way to prevent those significant emergencies from breaking your budget.
It’s even a good idea to add in some money you set aside each month within your expense calculations. That way, it’s already an established part of your budget. You’ll notice when you download our monthly budget template that’s a section we’ve added for you.
You Can Establish a Solid Budget to Improve Your Financial Situation
When you download our monthly budget template, know that you’re making an essential step toward improving your financial situation. You will see results with consistent effort.
If you need any motivation, try writing down your goals and even share them with someone you trust who will keep you accountable. Plus, whenever it feels like you’re starting to struggle, just think about the positives that will come from staying on budget. You can do this! Take it one step at a time.
