FREE Worksheet and Video Tutorial
This worksheet is the closest thing to budgeting you will find here. But it’s NOT a budget! It’s really all about understanding your money - your cash flow - how your money flows in and out of your system. The most important thing to remember here is to keep it simple. There are ONLY four categories to put all of your transactions in. They are Income, Savings, Bills, and Spending. They should look like this:
Let’s define these categories to make it simple to organize your transactions on the worksheet.
Income: any money that comes into your system.
Savings: money set aside for future use.
Bills: money you pay every month that is virtually the same amount. For example: Rent, Insurance, Utilities, and Phone Bills.
Spending: Any money you pay over which you have discretion. For example: Groceries, Clothing, Gas, and Dining Out.
Look at your calendar right now and schedule 30 minutes - no more - to get started. Your tools to have on hand are the FREE Worksheet, your last month or two of bank statements, a calculator, and highlighters. Go through your statements, review the transactions and highlight the transactions in the categories of Savings, Insurance, Debt and Other Recurring Bills in Blue, Yellow, Red and Orange to match the Worksheet. Now transfer the amounts to the Worksheet and total them up.
If you’re married or have a significant other you must do this together. The Worksheet is the framework you will use to begin to understand how your money works and you must build this understanding together. Otherwise if you show them the completed Worksheet they will look at you like you have two heads! I’ll say it again: DO THIS TOGETHER.