Budget Worksheet
Budgeting helps you manage your money
more effectively by planning how to allocate your
income to cover your expenses. The dual goals
of budgeting are:
· Spending less than you earn
· Increasing your savings
People often hesitate to budget, either because
they’re not sure how to do it or think they are
committing themselves to a rigid system that
they can’t possibly follow. Neither is true.
Making a budget is fairly simple. And while
sticking to your budget can be a challenge, you
should think of it as a work in progress rather
than a set of rules.
In fact, it’s probably wiser to forget the word
budget. What you’re developing is a spending
plan. And, like most plans, you can expect to do
some juggling until it works for you.
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This budgeting worksheet was created as a companion to
Veterans Handbook, ©2012 Lightbulb Press.
To see a sample of the Handbook or to purchase a copy,
visit us at www.lightbulbpress.com/bookstore.
Or contact us at info@lightbulbpress.com or 212-485-8800.
Budget Worksheet: Income
Step 1: Calculate Monthly Income
Calculate your current monthly household income
from all regular sources using the Income
Worksheet. This is the amount you can afford to
spend each month. Don’t include income from
occasional part-time work or gifts you can’t count
on receiving each month.
When you enter your salary or wages, use net
income, which is the amount reported on your pay
stub each pay period. If you’re paid twice a month,
be sure to add the amounts from both periods to
find monthly income.
Net income is calculated after federal and state
income taxes and FICA taxes have been withheld
from your gross income. If health insurance
premiums or contributions to retirement savings
plans have also been withheld, you do not need to
include these amounts as expenses when you get
to Step 2.
Income Worksheet
Income
Sources
Current Monthly
Income
Net Salary or Wages
Benefits:
a) Disability
b) GI bill
c) Other
Interest and Dividends
Other Income
Total Monthly Income
SAVE
RESET
This budgeting worksheet was created as a companion to Veterans Handbook, ©2012 Lightbulb Press.
To see a sample of the Handbook or to purchase a copy, visit us at www.lightbulbpress.com/bookstore.
Or contact us at info@lightbulbpress.com or 212-485-8800.
Budget Worksheet: Expenses
Step 2: Project Your Monthly Spending
Allocate your monthly income to cover your expenses by
filling in the Proposed Monthly Spending column in the
Expenses Worksheet. If you do not have an expense for a
particular category, just leave that line blank. If you have a
regular expense that’s not included, add it to the list.
Base the amounts you enter on what you are spending now
for each expense. You can use bank account and credit card
statements to find many of these numbers, but you may
have to track the things you pay for with cash for several
weeks to estimate your current out-of-pocket expenses.
Be sure you allocate something to savings each month,
concentrating on your emergency fund until you have
accumulated three to six months living expenses.
Step 3: Compare Your Income and Expenses
Add the numbers in the Proposed Monthly Spending column
and compare the total with your monthly income. If your
proposed spending is more than your income, you need to
rework your spending plan.
Some expenses, like your rent or mortgage, are fixed. A
smart approach is to enter these fixed expenses first and
then figure out how much is left to allocate to variable
expenses. Variable expenses, such as food and
entertainment, can change from month to month and are the
places where you can usually economize.
Remember, you pay some expenses quarterly or annually. It’s
a good idea to budget for those costs each month so you’ll
have the money available when you need it.
Step 4: Determine Your Actual Monthly Spending
At the end of the month, complete the Actual Monthly
Spending column using records you keep during the month.
Hit Enter on your keyboard to compare what you planned to
spend with what you actually spent.
If you spent more than you budgeted, you can tackle the
problem in several ways. For example, you can:
• Analyze the reason for overspending to decide
if it is likely to recur
• Reallocate your planned spending, moving
money from categories where you had a
surplus to categories where you had a deficit
• Reduce your spending in certain categories
Step 5: Track Your Progress
Follow the same process every month. At the end of the year,
assess how effectively you are managing your money. Ideally,
you’ll be spending less than you’re earning so that you can
increase your savings.
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Expenses Worksheet
Spending
Category
Proposed
Monthly
Spending
Actual
Monthly
Spending
Difference
Savings:
a) Emergency fund
b) Retirement
c) Education
d) Down payment
Rent or Mortgage
Food and Household
a) Groceries
b) Supplies
Clothing
Utilities
a) Electric
b) Gas/Oil
c) Water
Childcare
Education Expenses
a) Yourself
b) Spouse
c) Kids
Communications
a) Mobile phone
b) Landline
c) Internet/Cable
Credit Payments
a) Credit cards
b) Loans
c) Other
Transportation
a) Transit pass
b) Car care
c) Gasoline
Dues/Memberships
Insurance
a) Medical
b) Life
c) Auto
Out-of-pocket Costs
a) Prescription
b) Medical copays
c) Personal care
d) Gifts/holidays
Entertainment
Miscellaneous
Total Monthly Spending
SAVE
RESET