I wrote a post on percentage based budgeting and some friends and readers have reported positive, life changing results as a result of that article. I wanted to go a step further and offer a new tool that can allow you to visualize and allocate your monthly and annual expenditures as well as savings.
The Monthly and Annual expenditure worksheet is the next step after having calculated your percentage based budget from your annual income.
This worksheet allows you to:
- See weekly/monthly fixed expenditures and what week and date they are due.
- See annual fixed expenditures such as auto registration, property insurance, and more.
- Allocate savings first.
- Helps you allocate annual expenditures into savings so that you have the funds when they are due.
Using this worksheet has the following benefits:
- Having a clear vision of expenditures.
- Knowing when everything is due so you can cut checks or schedule auto payments in time.
- Helps create discipline for saving.
- Clarifies spending habits.
- Helps you learn between necessities and wants.
- Establishes positive financial management habits.
How To Use This Worksheet:
1. Enter in the title and amount of your fixed monthly expenditures as well as the date they are due.
2. Enter in your fixed annual expenses.
3. Enter your variable monthly expenses.
4. Enter in your monthly savings amount.
5. Enter in your monthly salary (after taxes) the worksheet will automatically total the fixed, variable, and savings amounts to be deducted from your salary. It will then tell you how much money you have left each week and day.
6. The worksheet will automatically allocate the amounts into different accounts – main checking, flexible spending, and savings.
Once you have been able to use this worksheet in its entirety, move onto the Flexible Weekly Spending Worksheet to keep track of your weekly expenditures.
My next article will talk about managing flexible spending accounts and will include a free worksheet!