Your variable expenses should naturally be the first items to be reduced.
If you find that you cannot match your numbers, you may need to start looking at ways to tweak your budget. By seeing how much money is coming in versus how much money is going out, you should start seeing where your money goes and how you can make small changes. This is where we look at the expenses and income together, and find a way to match every dollar you earn to an assigned part of your budget.Įvery dollar should be accounted for, whether it be for entertainment or savings – you will want to assign a dollar value to every element of your life - the more concise, the better. Now, let’s look at creating what we call ‘zero-dollar budgeting’. Although it’s not directly connected with figures and accounting, staying positive and reminding yourself that you’re doing something proactive in creating a budget is something to be proud of - not everyone is comfortable taking this first, important step! Remember that a budget spreadsheet is there to help you achieve your end goals, so be sure to list them.Īt, our goal in offering a free budget planner spreadsheet is to give everyone in Australia the opportunity to find ways to save money, set realistic goals, and then build them into a budget to show how they can be achieved.Ĭongratulations! The hardest part of the setup process is over, so give yourself a pat on the back. List the goal, the due date and implement a plan to start reaching your goal – step by step. Whatever the reason, be clear when writing your budget goals.
Variable expenses are slightly harder to track and may require you to set yourself a daily or weekly budget limit to help cover these.Fixed (or recurring) expenses are easily tracked, as they are often a set amount on a regular date.There are also two types of expenses: Fixed and Variable. Listing your expenses quickly helps you establish whether you have enough money coming in to cover these.
Your new expenses total $1,725 per month.You add a buffer of 15% which is calculated at $225.You estimate you spend $1,500 per month.When calculating your expenses, also factor in unexpected bills, such as unplanned car repairs.Ī good rule of thumb is to add an extra 10 per cent to 15 per cent. A forgotten bill really throws a wrench into your savings plan. Remember that being thorough when you add up expenses is important in creating a realistic budget. Some expenses are intermittent, such as insurance payments, so to get the most accurate financial picture you can calculate an average for six months to a year. Assess your expenses by consulting your bank statements, receipts, and financial files.