Step-by-step guide on how to really budget

The word “budget” gets thrown around a lot these days, but it’s not hard to see why.

We all feel pain as inflation rises, food costs rise, and household costs rise sharply (and rise again in the fall).

You are told to create budgets left, right and center to support these rising costs, but what does this really have to do with it?

Sure, you look at the money in your account and plan how much you want to save and spend each month, but understanding where your cash is going can add to your costs.

So how do you budget if you haven’t done it before?

For example, is it better to do it on paper, in an app, or in Excel?

If you ask yourself these questions, you are not alone.

The experts are literally ready to tell us where to start.

How do you do that?

Julian House, Managing Director of My Favorite Coupon Code, says it’s best to start by creating a very basic spreadsheet and calculating your monthly expenses.

“This will give you an accurate picture of what you’re spending money on and make it easier to find ways to cut costs,” he said.

“You can start with two columns, the type of the value on the left and the value itself on the right.”

Then, as soon as you do, you can extend it to track your weekly spending by adding a date line to the left of each day.

“We create documents in rows that show the date of the month and columns that show the transactions (and you can use bank statements to speed up the process,” explains business and money coach Jessica Narve. ..

Then over the weekend, upgrade everything you spend.

Simply add each item and the cost for the day (for example, the June 29 line). The value type column can contain “Trip” and the cost itself can contain “77”.

You can add the June 29 line to your lunch.

It’s helpful to know what your estimated monthly cost is and you can compare it to your monthly income to reach your savings goal.

Where is the best place to do this budget?

“By creating a budget, you can lose where you need to start physically (Google Docs, Microsoft Excel, or old paper). In fact, each path has different benefits, and they all have different benefits. I have,” Julian explains.

If you prefer old-school handwriting, you may need to invest in a special notebook.

However, if you use Google Docs or Google Sheets, one advantage is that you can access the files on different devices, depending on where you are.

“It’s essentially the same as a physical laptop, except it uses technology,” adds Julian.

“If it’s too difficult to use Google Docs or Google Sheets on your mobile phone, you can list the items in the Notes app and add them to your official budget when you’re in front of your laptop or computer. Increase.”

Alternatively, you can use Microsoft Excel, which allows you to organize your budget using formulas and eliminates the risk of human error.

“But using Excel is very dangerous for many,” Julian continued.

Therefore, we recommend looking for a guide on YouTube. There are many very simple tips and tricks that can really streamline your spreadsheet and make budgeting so much easier.

How often do you go back to your budget?

Making a budget is only the first step. It should be updated and checked as regularly as possible.

“If you use a system that works for you, like paper, Google Docs/Sheets, or Microsoft Excel, we track your spending on a weekly basis and check your budget at the end of the month,” adds Julian.

“You have to be flexible and realistic with yourself, and it’s almost inevitable that your exact plan will need to change from time to time, especially in the face of a cost-of-living crisis.”

Update your budget weekly according to your expenses for the week. Then check how much you have left in the remaining months.

How to make money for your budget

One way to keep track of your spending during the month and avoid unexpected surprises is to put the money in another account.

Jessica Narve of Business and Money Coach said, “We recommend tax accounts, savings/investment accounts, and spending accounts. Spending accounts are, within certain limits, free to use for food, gifts, and outings with friends/family. Eliminate excessive spending.

After payment, the specified amount must be transferred to these accounts. You can use various digital banks to create “pots” to divide money.

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