“Chains of habit are too light to be felt until they are too heavy to be broken.” -Warren Buffett

Our Budget Template

This week I'm sharing our budget template on the blog!
It's simple, but if you are just getting started, it's very easy to get used to and adjust as you need to fit your financial situation. I adjusted it slightly to share so that you can include tracking of debt payments and saving/investment payments as well. We've used this template or a very similar version of this one for much of the last 10 years. We have also tracked actual spending in Mint over time to ensure our budgets are fairly accurate over time.
It very simply lays out income, expenses and calculates a net cash flow each month.  I usually use a formula of number of pays by the amount of our bi-weekly pay cheques so if we have a change in pay we can update that figure in one place.

We also use anther worksheet to track our mortgage over time (I talk about how flexible our mortgage is here).  Because of the flexibility, we choose to pay certain things in lump sums to save on interest or convenience charges (think car insurance paid annually instead of monthly).  This does mean that occasionally we have a month where our mortgage goes up instead of down, but it more than balances throughout the year.

Additionally, we have one more sheet in ours with all of our account numbers, life insurance information and contacts should one (or both) of us pass away unexpectedly this will ensure our money doesn't get abandoned in accounts no one knows about, rather is put aside for our children.

Do you use a written budget?  What does your template include? What is the biggest advantage for you of using a template?

No comments:

Post a Comment

Thanks for engaging in conversation with us!