This is the minimum you need for necessary expenses. This is any additional income from an inheritance, gig work or other sources. This is money earned from rental properties, mutual funds or other investments.

This is your net income by week, month or other pay period. The following items are considered income: Gather payment information from the previous 6 months and use it to determine your average income per month. IncomeĪdding up your personal or household income gives you the first number needed to calculate your budget. However, there are several core budget line items that should be included. What are the major elements of a budget?ĭepending on your individual circumstances, your starting point for how to make a budget can include a wide range of items at various levels of detail. This can help you review and analyze trends, such as increased gas expenses during the summer travel season or higher utilities in the winter when your heater runs more frequently. Even if you decide to create an annual budget at the beginning of the year, you may want to break up your income and expenses into separate monthly pages or columns. This also allows for more flexibility as situations change. What's the best timeframe for a budget?īudgets generally work best when created on a monthly basis so they match the schedule of household bills like mortgages and utility payments. The information contained in your budget-including your current income, expenses, debt and tax liability-will help you to make realistic financial decisions and set future goals.

Budgets can take many forms, from a simple list to a series of complex spreadsheets. A budget is a money management tool that provides an overall picture of how you earn and spend money.

Create pie chart in excel for expenses