Like our hypothetical Rob, review your own budget to see if your spending makes sense for your goals, and adjust accordingly. Compare projected costs with actual costs to hone your budgeting skills over time. Input your costs and income, and any difference is calculated automatically so you can avoid shortfalls or make plans for any projected surpluses. Therefore, he adjusts his budget so that he’s spending less on vacations and saving more for his down payment. This Excel template can help you track your monthly budget by income and expenses. However, Rob’s goal is actually to save for a down payment. If his main goal was to have vacations, then this would align with that priority.

After reviewing his expenses, he realizes that his money is going more towards spending on vacations than it is saving on a down payment. Once your expenses don’t exceed your income, ask yourself this second question: Do your expenses align with your budget goals? For example, let’s say Rob’s practical budget goal is to save for a down payment on a house. This will help you avoid using credit to make ends meet, which often leads to expensive debt problems.

So here’s the first budget maker question: Are you spending more than you earn? If you are, then review that master list of expenses and cut it down until your total expenses match your total income. You already know what your expenses are because you’ve been tracking them. It must prevent your expenses from exceeding your income, and it must align with your practical budget goals. With practical goals to work towards and knowing your expenses, you’re ready to prepare your budget. Overspending is a key reason why household budgets fail, so all of these steps help you avoid spending more than you make. To make the process even easier, use this simple money worksheet: our Monthly Expense Tracker. Doing this will give you a good idea of your overall spending habits, and you might be surprised by what you find out. Whether you’re paying your bills, shopping online, or buying snacks at a convenience store, jot down every cent you spend into a single document. But do you know where it all goes? The best way to figure this out is simply to track your spending for a month. child tax credits, alimony or child support, investment income). You probably already know how much you earn each month and how much you might get from other sources (e.g. Once you have some practical goals in mind, it’s time to figure out how money is flowing in and out of your household. Track the Money Coming Into Your Household and Your Spending A household budget worksheet is a document used by an individual to track their spending for better financial management.

Easy household budget sheet