Before you start poking sticks in your eyes, I promise it’s not that bad! It’s not that hard and I’m pretty confident you’ll feel good about it afterwards.
- The top section of the budget planner is for the Income section. It is designed for you to enter your in after-tax income (what you receive in your bank account on payday). If you are doing this exercise as a couple, there is a row for each of you.In the Amount column simply enter in your after-tax income, and then use the drop-down in the Select Frequency column to enter whether your pay cycle is weekly, fortnightly, quarterly or annually. You’ll notice the Annual Total column automatically tally’s up your income.
- Next is the Expenses section and will likely take the longest, although you’ll be surprised how much of it you know off the top of your head. Just remember to check that you are selecting the correct frequency of each expense you enter.
- At this point, you should hopefully have a positive figure in the Surplus/Shortfall column and you can move on to the Savings, Investments & Debt Reduction section.As you allocate money to this area, you will see the surplus decrease. Use this to help you work out how you want to split your surplus up. Use it to reduce debt, build up your wealth, or both.
When you’re filling out your expenses you may find that there are some things that you’re spending waaaay more on than you’re comfortable with (stuff that’s costing you money that you just don’t value). It’s often only when you look at expenses in an annual context that you have this revelation.
Anything that falls into that category, cut it out or reduce it and watch your surplus go up.
You can then use that additional money to build even more wealth.
See, it’s as easy as 1, 2, 3!