I use an excel spreadsheet to keep track of ours. Across the top I input the pay dates and the amounts from each income source on those specific dates. Then list down the left side the names of each expense you have and the monthly amount. Even if you have bills that are only paid every 3 months (such as sewer or trash), divide those into monthly expenses to keep in the bank. I then use simple formulas to sum the payment amounts and subtract them from the income for each pay period. That leftover amount is what you will have to put into your savings or use for an emergency that you may not have expected during that time.
To make sure you don't forget any monthly bills, locate them from the prior month, your bank statements and credit card statements. Don't forget to add expenses like groceries, hair cuts, prescriptions, vet grooming and immunizations, fuel, cleaning/household necessities and entertainment, etc. Make sure you also have a miscellaneous column for unexpected expenses such as car repairs and plumbing leaks (or put that amount into a savings column).
Decide if any, how much you can cut from your budget, if you would like to have more go into your savings column. Next blog will be cutting expenses from your budget and how to use coupons effectively!
See Example:
Review your spending habits every week or so to make sure you are sticking to your budget, or that you haven't forgotten an expense or two. Also, it's sometimes easier to allot a certain allowance to each person for daily expenses such as lunches, morning lattes, etc. Depending upon how much you want to put into your savings account, this example could allow for a $50 allowance each pay period for each person. Clothing & haircuts could also be put into the Misc/Unplanned column instead of making a column for each of those specific items.
Next blog: How to cut expenses from your budget (lowering cell phone plans, using coupons and much more)!
