Free Personal Monthly Budget Template
A personal monthly budget template helps an individual to plan for his own finance and manage his/her expenses in the most effective manner where it has to be made sure that the user doesn’t fall into any debt trap where his expenses are more than income, and he/she only adapts to a debt-oriented style of living.
About Personal Monthly Budget Template Template
The personal budget template will capture all the available sources of income one has and all the expenses which one needs to bear on a day to day basis. This template can help the user to keep track of his expenses and make sure he/she is spending within manageable limits where even if there is the utilization of debt that can be easily paid back with the income one generates.
- This section gives us a snapshot of the entire income figure, which one has and henceforth the expense figure too. The net balance calculation happens here, which, if positive, means the person has enough income to capture all his expenses. If the amount here is negative, it should be the first trigger or warning where certainly the expenses are more than the income level of the concerned user.
- The projected balance gives us the final amount which the user planned to save at the beginning and matches it accordingly with the month-end balance, which is nothing but the difference between income and expense.
This section is used to classify all the income which an individual can have. It may consist of various streams of income, namely salary, interest from savings, dividendsDividendsDividend is that portion of profit which is distributed to the shareholders of the company as the reward for their investment in the company and its distribution amount is decided by the board of the company and thereafter approved by the shareholders of the company., freelancing income, etc. All the income generated monthly is stored and recorded in this segment, and a total is calculated based on the same.
- This section is more of like the necessary amenities needed to run a living. Here the user will capture the electricity bill, gas bill, and groceries. These expenses are more concerned about the day to day living of the individual, and to some extent, the budget allocated towards are don’t vary a lot every month.
- Even any kind of home loan or property repair and taxes are recorded in this field. As stated above, these amounts tend to vary monthly to a minimal extent. The cost of electricity and water is also shown here as they belong to the basic amenity for living. Any furniture purchased or repairs made should also be captured in this section.
Commute plays a vital role in everyone’s living, and thus monthly, there should be a certain amount allocated towards this thing too. Either personal transport or public transport has a particular cost of usage. The fuel in the case of private transportation is the main category, which gets recorded here along with the parking charges and insurance premium. Also, the cost of the ticket to utilize public transport should be captured here.
Health and medical-related expense is a thing from which no one can escape. This section records primarily all the health-related expenses, which include medical insurance premiums to fees paid to doctors and the cost of medicines. The life insurance premium also gets captured here, along with the medical cost of pets and vets.
Gifts and donations are common today as most people adhere to donations, which is used as an avenue to bring about tax savings. Also, the culture to gift people as a token of memory or appreciation is a common thing that should be recorded here.
- This section targets more daily living expenses like groceries, personal supplies, clothing, cleaning, salon, etc. These expenses are again part of the day to day lifestyle and cannot be avoided under any circumstances. For having a healthy lifestyle, these expenses are common, and also a set budget can be conveniently allocated against them.
- This section also captures the cost of education or dining, especially when we are eating out. Having a pet in houses is very common, and this section also bears the cost of maintaining a pet.
- Entertainment these days are part and parcel of every individual’s lifestyle. Starting from movies to OTT applications, one has to allocate a certain amount towards these attributes to enjoy a life apart from only working. Even books or the amount spent on activities related to one’s hobbies are captured here.
- Any sports subscription fee or gadgets purchased is also recorded here. The most crucial cost spent on travel also gets captured here, and that is a high cost for every household in the US/UK.
Any amount spent toward saving related or investment-related activities are captured here and recorded accordingly. Nowadays, everyone plans for retirement funds and another investment fund for a secure future. Thus all these bear a monthly or yearly premium, which should be recorded here accordingly.
Credit card and line of creditLine Of CreditA line of credit is an agreement between a customer and a bank, allowing the customer a ceiling limit of borrowing. The borrower can access any amount within the credit limit and pays interest; this provides flexibility to run a business. is a common thing which every individual possess this day. Usage of credit card is a widespread thing, and thus this should also be recorded to keep a check on the spending and if some is over-utilizing the credit card compared to the income earned.
The cost of spending oversubscriptions are recorded here, and also the monthly spend on newspaper and magazines are captured in this section. Any dues or subscription to online platforms is also shown in this segment of the personal budget template.
Last and finally, all the other miscellaneous expenses can be put under this section. Even petty expenses like the cost of postage and couriers or other meager expenses can be recorded in this part and included in the total expense of the month.
How to Use This Template?
The template is very useful in managing day to day expenses when compared to the overall income. A personal budget template helps an individual to plan for his finance and manage his/her expenses most effectively. Here it has to be made sure that the user doesn’t fall into any debt trap where his expenses are more than income, and he/she only adapts to a debt-oriented style of living.
This article has been a guide to the Personal Monthly Budget Template. Here we provide you with a free downloadable personal monthly budget template that allocates or plan the spending over a period of time. Also, you can download and use this template in Excel, Google Sheets, or PDF format.
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