Printable Personal Budgeting Planners

If budgeting for yourself is a totally alien concept, there are ways to go about it that wouldn’t be too difficult or painful – after all, assessing where our money goes every month isn’t exactly an inspiring chore. Think “spring cleaning” for your finances, and here are some things you can do:

First Step: Know your worth.

In simple terms, this is everything that you currently own and that you earn. List down all your assets – properties, bank accounts, regular income, commissions, even inheritance money or trust funds. This table would show you how much your resources are and where your biggest source of money comes from.

Second Step: Know what you need.

In terms of regularity, list the things that you feel are essential to you. An annual physical and dental checkup. A monthly haircut. Water and electricity. Gas for your car. Food three times a day. Brain food in the form of books and reading materials. Social interaction. A roof over your head. Then put in corresponding amounts for each essential item according to your actual spending pattern.

Afterward sort them by amount, listing the most expensive item per month down to the least. If the amount is frighteningly large, you can reduce it by simply extending the life of the items. Instead of a haircut every four weeks, make it every five weeks. Instead of 2 pocketbooks a month, make it 5 books every 3 months. It then becomes like a personal reward to look forward to.

Third Step: Assess what you want.

A monthly hair styling or perm or color. Cappuccinos or cocktails after work. Club memberships in the top gym. Shopping each time you feel like it will help your sanity. Designer shoes and bags. A Manhattan apartment.

A European destination vacation. Make a wish list, or it can even be a list of those small luxuries you are actually already spending for regularly. Put in amounts for these items as well, according to how much they actually cost. You might be surprised how long or how many items do actually get into the list so be very honest about your spending.

By this time, you have to evaluate the difference between the two. Things you need are those things you basically and essentially cannot do without. Things you want are those things you think you cannot live without. Although quite often the lines of distinction are blurred, the items in the “need” column often refer to acts or activities, while the items in the “want” column often refer to items or brands or destinations.

If you can afford to indulge in everything in your wants column without feeling a pinch in your wallet, then that means you are still within your budget. If however, by indulging in your wants column you have started to fall behind in your credit card payments, or you forego some items in your needs list, then maybe a slowdown is in order. Think water first before cappuccino. Electricity before that $200 electric blue skirt. It’s not as exciting but it is the kind of discipline that would help you put your financial affairs into order.

With the use of either a simple spreadsheet or with the aid of personal budget software, compare your assets list with your expense list. When you see the numbers printed, it then will become easier for you to decide which areas to prune or cut back on.

Make it a habit to do these steps regularly. Keep a tab on things, so that you’ll have enough to splurge when the want arises.