A good and practical budget worksheet starts with an honest and open assessment of the monthly expenses of the business. This can only be done with accurate and precise information of all regularly occurring expenses, including any money that is spent of seemingly insignificant things.
On the budget sheet indicate in the relevant categories all the required information needed and for those categories that do not apply to the particular business practices simply ignore.
If there are categories that exists within the business but are not categorized in the budget worksheet, simply add them on at the bottom of the sheet where there is always adequate space provided for such additions.
For property tax, auto insurance and any other expenses that don't normally fall into the monthly billing category take the total cost of it per year and divide it by twelve and then add it into the budget worksheet projections.
In the preliminary stage calculate only minimum payments required to satisfy the debts incurred as this can eventually be built upon as the surplus amount becomes healthier.
For expenses such as entertainment, groceries and eating out, use a separate spread sheet to work this out based on any previous information which should have some form of consistency.
Once this has been done the overall building budget worksheet should be fairly complete thus creating the platform to determine if the current scenario is compatible with the income shown.
At this point the individual would then be able to make decision in a more informed fashion based on all the relevant data presented in the budget work sheet.
Using other examples to help the individual throughout the exercise would be advised as this can assist in giving the individual an idea of where and how to make adjustment in order to still be able to enjoy peace of mind.
Learning to budget simply means learning to track spending habits to
ensure less is going out and more in staying in. this would help not
only in the short term but also in the long term financial health of an
The budgeting exercise should not be limited to people having
problem with their finances per say but it should be inculcated from a
very young age for every individual.
The budget exercise allows every individual with an income and
expenses portfolio to make decisions about how they can best allocate
the income to serve the expenses and yet leave some for the future,
which may include a suitable retirement plan, a healthy savings plan
or just about anything that won't break the bank.
Budgeting helps to create a very visible short term expense scenario,
which would include the payments of monthly bills and
Then there is the midterm budgeting scenario which may include
holidays, buying a car and other commitments that don't require
more than a few years to pay off.
The most commitment demanding budgeting is the long term one
where fixed funds are set aside for retirement plans, purchasing of
property, children's education programs and such where the
committed amount is significant and has to be sustained for a long
period of time.
Having a spread sheet drawn up which reflects the current income,
projected income and corresponding expenses and future possible
commitment will give the individual a better overview of how to wise
work out a suitable and manageable budget.