Here is a simple one page budget you can download to start you on your financial journey. Remember, everything you spend money on must be listed on the budget! Make more categories or lump several things together but get it all listed somewhere! Sometimes just putting things down on paper can really help. Don’t know how much you spend? Get your bank statement out and break it down.
- Start by listing your net income. Break it down by all the types (your income, spouse income, side hustle). If your overtime is not a guarantee each week list it separate from your regular take-home.
- Then list needs. These are things your family is spending on every month that don’t go away. Debts like car payments will end someday but you always have to pay utilities. List what you actually pay for the the things you need (include those you have a contract to pay each month – cable/internet/phone).
- Then calculate “wants” spending. For now just be honest! If you spend $5 a day on Lattes it needs to show up in “wants”. Don’t worry about what it should be just start with what it actually is.
- Now list debts. I know! I know! You hate this part but you have to do it. List each debt you send a check for separately. List the total amount, minimum monthly payment, and interest rate (%).
- List any savings. If you have money in any kind of savings list it. You can list your IRA/Roth/401(k) if you want also.
- Total each column up (in debts only total monthly payment).
Now you have your spending all laid out on one page.
This is the time to start talking about what changes you might want to make.
Now would also be a great time to contact us about a one-on-one planning session. We schedule it around your schedule and takes 1-2 hours to get a idea of where to go next.