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Family Budget Planning Worksheet

12.12.2011 by Matt Jabs //

Family Budget Planning WorksheetDo you wonder where your money goes… or do you tell it where to go?

Helping you budget your money

Creating a handwritten budget from scratch before attempting to use an existing software or spreadsheet can deliver extra flexibility when forming your first budget. Before using this spreadsheet it may be useful to create a paper budget from the ground up.  No spreadsheet… no software. Once you get the hang of your handwritten budget, turn it into a spreadsheet so you can take advantage of the calculations and ease of monthly reproduction.

That’s what I did.

What follows is a brief history of my budget, followed by the budget worksheet in 3 usable formats with sectional instructions for use.

From handwritten to electronic

I did handwritten, and it worked great. Manually forming the structure of my budget was necessary, but once the foundation was solid it was time to move to a system that enabled me to easily and quickly fill in each and every month.

Slowly I began developing a spreadsheet to capture the simplicity and function of our handwritten budget, but with the added bonus of auto-calculations and ease of monthly budget reproduction. It’s far easier to fill in the monthly numbers, save them, and print them out than to rewrite it every 30 days.

Looking to buy software? If you prefer a software solution to the handwritten or spreadsheet approach… I recommend You Need A Budget.

Use the budget planning worksheet

If you just want to grab it and go… here is the spreadsheet.  If you want or need explanations of sections, please scroll down to the explanation section of this post.
I have included 3 versions: Google docs version, Microsoft Excel version, and OpenOffice version.

Microsoft Excel version

  • MS Excel spreadsheet

OpenOffice version

  • OpenOffice spreadsheet

Budget spreadsheet breakdown

Generic information

A budget is a living document, constantly changing, adapting, and growing to better reflect where and how you spend and save your money.  Do not try to make everything perfect… just get it done, then work on tweaking it from month to month.  If you think it will be perfect in one month you will likely work yourself into a tizzy and soon stop budgeting altogether.  Sound familiar?  Patience young budgeting Jedi… I was once in your shoes too.  You can master this budget – just be patient and faithfully work it month in and month out.  I promise the rewards are worth the time and effort.  🙂

All sections have 3 fields – Projected, Actual, and Difference – they are what they are.

  • Projected = the amount you input  in each category at the beginning of the month.  Remember, don’t try to be perfect here – if you are unsure of an amount, make an educated guess and move on to the next category.
  • Actual = the amount you enter at the end of each month… after the money is spent.  This should be exact and based on actual hard numbers.  To better keep track of what you spend consider keeping a spending journal – we do – it is an essential way to track discretionary spending.
  • Difference = the amount your projected amounts differ from the actual amounts.  We use the information in these fields to continually tweak how much money goes where.

I have put input some “example numbers” and have only created one sheet labeled “January.”  I encourage you to tweak your fields and numbers then duplicate the sheets to include every month of the year.  I could have included 12 sheets, one for every month, but then you would just be faced with changing all the fields on each sheet manually anyway… so make your changes to January then duplicate the sheet for each month of the year.  To do this, look at the bottom of the spreadsheet screen and find where it says “January.”  Now click on that and choose “Duplicate.”  Once you have duplicated the sheet now click that new tab and choose “Rename.”  You can either create all 12 tabs for the year in advance or just do them as each new month is beginning… I choose to do the latter in an effort to avoid having to change all future sheets if I make a simple field adjustment.

Income

This section is pretty self explanatory – just make sure you include all sources of income including monthly bank interest, dividends, gifts of money, and money you make working any side jobs (a.k.a. “side hustle”.)

Savings

This is where you record all accounts you currently have as savings for the future including, bank accounts, CDs, mutual funds, etc.  Your projected and actual amounts in this category are easier to nail down because you have direct control over how much you are saving each month.  I advise you to set savings goals, create multiple savings accounts (either on paper for tracking purposes or literally as I do in my Capital One 360 account) and then set up monthly auto transfers of specific amounts to each account.  Automation is key when it comes to saving money!  Remember… it’s your money – pay yourself first!

Fixed Non-Monthly Savings

This is an awesome section of the spreadsheet and one you are not likely to find anywhere else.  To populate the fields in this section, do the following:

  • Make a list of all your non-monthly expenses that are fixed amounts.  For example, auto insurance, auto plates and registration, association dues, professional dues (like union dues), 1/4 of beef, magazine subscriptions, etc.
  • Calculate the yearly amount each of these expenses costs you, add them together and divide by 12.  For example:  if the combined yearly total of all your non-monthly expenses is $3,300 – your monthly amount to save will be $225.
  • Do the calculation for each expense (or group of expenses) and enter that as a field in this section of the spreadsheet, like the sample data I put in the spreadsheet template.

Later in the spreadsheet you will find the Fixed Non-Monthly Expenses section.

Expenses Section – Rather than setting up a simple “expenses” category, I broke expenses down into five different categories to better track and manage them.  Auto pay, manual pay, fixed non-monthly, cash envelopes, and other (or left overs.)

Auto Pay Bills

The first section of expenses is auto pay bills.  I encourage you to use the power of automation for as many financial transactions as possible – when it comes to personal finances… automation = success.  Bills that are friendly to automation are bills that have static amounts and static due dates each month.  If the amounts are not changing and the due dates are not changing… then set up automation.  Look at it this way – every automated bill is one less bill you have to worry about!

Always set up automation through your bank… not through your debtor.  I never give a debtor direct access to my accounts –  if at all possible, neither should you.

Manual Pay Bills

Here you will enter monthly expenses with fluctuating payment amounts.  You know that you have to pay it every month… you just don’t know exactly what the amount will be.  Examples that fit into this category are gas and electric, sewer, water, etc.  Don’t worry about getting these projection amounts perfect, just enter in an average.  What I did was to go back 12 months for each expense, found the average, then entered that as my projection amount.  Some months it is too high, and some months it is too low, but this way I always have the extra money in my account when needed.

Fixed Non-Monthly Expenses

This section is directly related to the Fixed Non-Monthly Savings section detailed above.  In these fields simply record each fixed non-monthly expense as it comes due.  This is a GREAT way to keep track of – and stay on top of – bills that are due at irregular intervals.  Without using this system you risk being hit with “surprise” expenses that can ruin your budget.  Using this system provides you with a solid solution to those budget busting problems!

Cash Envelopes

This is one of our new favorite categories!  You can take this section and really make it your own.  My advice is to use cash envelopes for spending categories that constitute random spending… like groceries, dining out, entertainment (like movies, etc), clothing, and the biggest one… miscellaneous.  The power of using cash envelopes cannot be readily explained… it is something you cannot understand until you implement it into your own life.  Want my advice?  Do it… and do it now.  From the very fist day we started using cash for specific purchase categories we saw an immediate change in how we felt about the purchases.  There is just something painful about seeing the cash slip out of your wallet and into the hands of another!  This concept is especially powerful for your random spending habits – when implemented properly, it will help you reign them in quickly… I promise!

Other Expenses

Last but not least, the infamous “other expenses” category.  This is where you will lump together any expenses that do not readily fit into any of the previous categories.  Make sure you try to put expenses in one of the above categories first, but if the do not fit, put them here as a last option.  Most of the time, but not always, the expenses that end up with here will be non-monthly and non-fixed expenses.  A lot of times you will have no way of knowing when the expenses will come due, nor how much they will be.  Some examples are, doctor, gifts, house expenses, gas, etc.  You will basically take any left over categories, put them here, and project their costs as closely as you can based on past experience.

Family Budget Planning WorksheetThe Summary

This is what it is… just a big summary of your income, savings, and expenses in one quick view.  I’m not sure how useful it is, but I know some people like to see it so I included it.

Make the budget worksheet your own

Remember… your budget is a living document – expect it to change over time.  Do not focus on making every calculation perfect… your accuracy will improve over time.  For now just focus on using the spreadsheet faithfully each month and don’t be afraid to make it your own.  The categories and amounts I put in are just examples… if you customize it to your situation you increase sustainability of future use.

If budgeting is a problematic behavior for you… using this spreadsheet will give you a fresh perspective and hopefully help you finally nail down a solid spending plan for your unique situation.

You can wonder where your money goes, or you can tell it where to go!

Categories // Money Management Tags // Money Management, planning, spreadsheet

FREE Microsoft Money Replacement – Mint.com

03.13.2011 by Matt Jabs //

Microsoft money replacement

Have you been using Microsoft Money, but are now looking for an replacement/alternative?

Join the club.

I searched for months to find financial tracking software that works for me and have used everything on this page at one time or another.

Mint.com a free replacement that works great

  • Mint.com is a FREE online alternative to Microsoft Money.  I have personally tested and used Mint.com and recommend it as the best free alternative.  Another free option would of course be to use a spreadsheet.

YNAB and other non-free alternatives

  • You Need A Budget (YNAB) – In my opinion, this is the best budgeting software on the market… and they offer a generous 60-day free trial.  Many PF Bloggers use YNAB to manage their finances.
  • Mvelopes – Applies financial software technology to the traditional envelope method of budgeting and is another popular choice among PF Bloggers.  They offer a 14-day free trial and their prices are as follows: Quarterly = $39.60 ($13.20/mth) – 1 Yr = $129.60 $10.80/mth) – 2 Yr = $189.60 ($7.90/mth)
  • Quicken – Touted as America’s #1 Personal Finance software, Quicken offers a variety of products ranging from $0 (online version) to $99 (business version).

Google personal finance templates

I am not opposed to paying for software, but I am also not afraid to examine free tools to see if they meet my needs.  There are a lot of useful templates Google Docs inventories, I tested many before deciding to create my own from a template.  I especially like the rating system, which allows me to see which templates have been more useful to more users without having to waste my time trying each one.

  • Manage Your Expenses – This section mostly gives you a choice between Family Budgets or Personal Budgets, but also has several spreadsheet templates for Wedding Budgets and even offers a Home Improvement Spreadsheet.
  • Pay Off Your Debt – This section is currently offering payment calculators.  Specifically there is a Credit Card Payoff Calculator, a Mortgage Payoff Calculator, and a Simple Loan Calculator.
  • Grow Your Savings – This section offers several tools to help you get you manage and grow your savings account including registers, ledgers, & calculators.

What do I use?

I am currently testing the trial of YNAB. I have also used Mint.com, which is free… but mostly I just use a simple budget spreadsheet I created and keep in Google Docs.

Categories // Money Management, Tips Tags // free, Money Management, software, spreadsheet

How Much Our Debt Costs – March, April, May 2010

05.25.2010 by Matt Jabs //

February 2010 Update – How much our debt cost

“He that hath no rule over his own spirit is like a city that is broken down, and without walls.”  – Proverbs 25:28

Over the course of March, April, and May 2010 our debt cost us $37.08/day, down from 42.46/day back in February. This is just the cost of the interest on our debt, and does not include the principal amounts.  That said, when we started our debt free adventure back in January of 2009 we were paying $1,328 – which was $47.43/day.  Our debt reduction efforts over the course of the last 17 months are saving us nearly $10 every single day… money we now to funnel into our Capital One 360 Savings account to pay us rather than fat cat bankers!  🙂

I love thinking about how much more we can save because of how much less we owe.  Hopefully this motivates you as much as it does me!  Let’s take a look at the individual interest breakdown then talk about the progress in greater detail.

Here is the comparison between the last two months:

February 2009 Interest PaidMarch 2010 Interest PaidApril 2010 Interest PaidMay 2010 Interest Paid
Mortgage 1 – $584Mortgage 1 – $583 = +1Mortgage 1 – $582 = +1Mortgage 1 – $0 (refi – free month)
Mortgage 2 – $292Mortgage 2 – $292 = 0Mortgage 2 – $291 = +1Mortgage 2 – $291 = 0
Student Loan 1 – $160Student Loan 1 – $144 = +14Student Loan 1 – $199 = -55Student Loan 1 – $112 = +87
Student Loan 2 – $120Student Loan 2 – $120 = 0Student Loan 2 – $105 = +15Student Loan 2 – $111 = -6
Lending Club – $33Lending Club – $0 = +33Lending Club – $0Lending Club – $0
Total Interest Paid – $1,189Total Interest Paid – $1,139 = +50Total Interest Paid – $1,177 = -38Total Interest Paid – $514 = +81

A few notes about the details of the numbers…

  1. We’re down to just four debts. Back in March we paid our Lending Club loan off and are left with four debts.  1st mortgage, 2nd mortgage, my student loan, and her student loan.
  2. Somebody screwed up. Although student loan interest varies each month, mine varied much more than expected over the last 2 months.  Why?  Either my student loan company, Capital One 360, or I myself screwed up.  I have auto payments set up for all of our remaining debts, including my student loan.  Regardless of this, and despite the fact that I have $1,000 worth of overdraft protection on our my bank account, Capital One 360 reported insufficient funds to my student loan company when they attempted to auto-draft the payment.  The result?  A spiked interest payment for the month of April.  Although I know I should have, I never called Capital One 360 about this.  The draft would have overdrawn my account by just a few dollars, but instead failed to go through… not sure why.  I normally carry a $1,000 checking cushion but let that dwindle too far down and ended up paying for it in higher interest costs, along with a $15 late payment penalty from my student loan company.  *sigh*
  3. Side hustle earnings still growing but could be higher. Thanks to continued earnings across the board and bloated TurboTax affiliate numbers through tax season our side hustle earnings reached nearly $2,000 in April, and were closer to $1,500 for March and May.  Although these earnings are great, my decrease in posting frequency has hurt my income growth potential and I really need to bust my butt to get back on track here.
  4. Home loan refinance allows skipped 1st mortgage payment. Because we refinanced our home loan back in April our 1st mortgage lender allowed us the opportunity to skip our mortgage payment for the month of May while they paid off the old mortgage loan and opened the new mortgage loan.  While this did free up a good amount of money, we were not able to save it all or put it all toward debt repayment because of a few unplanned expenses.  Our budget has since been updated to compensate for similar future budget mishaps.
  5. Lapse in discipline. Although it isn’t easy to admit, we have had a few lapses in self-discipline over the last few months.  These lapses have resulted in less scrutiny toward spending and less attention paid to my blogging.  I am angry that I let either transpire and while our lapses were minute and affect our bottom line very little… they need to be acknowledged now and avoided in the future.
  6. Overall outgoing interest is way down. The average amount of monthly interest on debt we are paying now is $200 less than when we started out debt free adventure!  That is music to my ears and just the motivation I needed to kick things into high gear again.

The “How Much Your Debt Costs” Spreadsheet & Graph

Don’t forget to check out the spreadsheet I created to calculate how much our debt costs complete with the nifty little graph allowing you to visualize your progress.  I call it the How Much Your Debt Costs Spreadsheet… check it out.

The spreadsheet also highlights monthly interest amounts paid in BIG BOLD numbers so you can print and stick them on your fridge.

Categories // Debt Tags // Debt, How Much Interest?, interest, spreadsheet

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Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

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Disclaimer

Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

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