Budget Worksheet — Set your expense targets and plan to hit them
First, enter your estimates in the Target Amount column. Over the next three months, keep track of what you spend in each category. Even though its tedious, it’s important to write each spend down. Divide the totals by three and enter the results in the Actual Amount column. For variable expenses that happen more or less often than monthly, keep track of each individual cost, add them up and convert the totals into an average monthly amount.
You can do these worksheet calculations every month or every six months, or whatever works for your schedule. Over time, you’ll see where you are spending too much and where you’re being thrifty.
You’re aiming for a positive number in the Difference column, especially when you compare the difference between total expenses and total income. This would indicate a budget surplus. That’s always a good thing because it frees up money to put into your savings.