2022 Budget Format
Hello 2022!
I know we are already 7 days into the new year, and this post is about a week behind - but it’s the best I could do, haha!
Just because we are 7 days into the new year doesn’t mean it’s too late to make your own budget plan for the year! Maybe you’ve never made your own budget. Or perhaps its been a long time. It’s possible you’ve tried to make a budget plan with a fancy format you found online but it stressed you out to the MAX so you stopped. I don’t think its super common (at least not in my experience) to have a budget written out. Most of the time it’s a mental thing. People have it all in their heads - relying on seeing everything via memory. I can’t do that anymore though because my brain doesn’t need that kind of added pressure, haha!
If you want to hear in much more detail why I format my budget the way I do - or how I distribute our - take a look at my Youtube Video! That’s where I really get down to business outlining my budget format for this year, as well as some of the changes Elih and I have made to it in comparison to last year as a single income family.
But if you don’t have the time to sit and watch, i’ve made it easy for ya! Posted below you can see exactly how I format my budget. I don’t follow any formats i’ve seen online because I don’t believe any one format is going to work for every person/family. We are all in different places financially, and most budget formats don’t take that into consideration. My format is one that can be easily applied to most people (if not all), I believe. It’s a simple format that you can customize to your financial situation. Overall, it’ll give you an overhead detailed view as to where your money is going so you can visually see it and decide if that’s what is most beneficial for you. Once you get there, you can make the needed changes and take control of your money. Then you can decide where you want your money to go and once that’s done - you have your own budget.
So let’s briefly get into the format…
The first thing I did was write down Goals. These Goals are for this year specifically. We have a list of lifetime goals as well, but the money that goes into savings is what works towards those long term goals. I keep Goals at the top so that it’s the first thing I see when I look over my budget. Those are the things we are working for and I don’t want to lose sight of it.
Next up is Income. I want to be aware of what’s coming in each month. As a side note, I round down these numbers. My video explains why!
Necessary Expenses and Withdrawals are next. This is where the time consuming part comes in. I look over my bank account, credit
card, etc, and write down every pre-authorized payment, withdrawal, bill, donation, and every single transaction that happens within the month. Every transaction gets listed in bullet point form with the cost beside it - down to the cent. Then I colour code each transaction according to where the charge is coming from. More detail about why I do this in my video!
I also include Totals based off of how many pay days we have in a month because a third pay day changes not only our income, but the amount of money that goes out each month. I Total every colour coded transaction together in their corresponding groups. Above those numbers I have the complete amount of every transaction added up all together. At the bottom I have the Leftover Total - telling me how much is left for wiggle room at the end of the month once all our payments/donations/withdrawals have been dealt with.
That’s it! That is how I format my budget. You can see why it is easily customizable for every person/family (probably). All it does is help you to get an eagle eye view of what is happening with YOUR money. From there you can ask yourself if you’re happy with where your money goes… If you need to make changes/sacrifices… If your utilization of those funds will help you reach your goals for the year. Once you answer those types of questions and make any adjustments - you have yourself a budget. All you have to do then is stick to it!
Budgets don’t have to be intimidating or constricting. They are a very useful tool that’s meant to benefit you and your future.
Again, if you want to hear more about my budget and how we prioritize our money, feel free to check out my video!
