You can also cut these expenses if economic times are hard and you’re struggling to get by.Įxamples of nonessential expenses might include: If an expense is nonessential, that means you can cut it in pursuit of other goals. You might not incur the costs every month, but they’re big ones that you’ll want to save for and schedule.Ĭut or limit nonessential expenses as necessary. You’re also going to need to pay for maintenance. For example, if you need a car to get to work, every year you’re going to need to pay to get that vehicle inspected. These are expenses that you cannot live a healthy life without.Įssential expenses may occur every month, or they may be more irregular. In addition to these categories, you’ll want to tag each expense as either “Essential” or “Nonessential.”Įssential expenses include things like rent, mortgage, groceries, and utility bills. You can categorize them into groups such as: Now that you know what your expenses are, you’ll want to categorize them. You can simply download your statements from your financial institutions for the last three months, or import them using your favorite budgeting software or app. You don’t have to wait until three months from now to write your budget, though. Ideally, you’ll track your spending for at least three months. This will help remind you of the bills you pay on a monthly basis, identify bills you might be able to negotiate, and help you understand how much all those innocent-seeming $5 purchases you make here and there throughout the week can really add up. That’s why it is imperative to track your spending habits. Before you can change what you’re doing, you need to be aware of it. That’s a big part of it.īut at the end of the day, you’re not going to meet your financial goals if you don’t actually change what you’re doing. Sure, it’s about numbers and spreadsheets, too. Track your spending habitsīudgeting is all about modifying your behavior. Whatever your budgeting goals are, if you identify them before you start, it will help you prioritize your spending later on in the process. You might want to retire early or simply be able to go on a family vacation every year. Maybe you want to leave the paycheck-to-paycheck cycle behind. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.Maybe you are in a ton of debt. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. We provide third-party links as a convenience and for informational purposes only. Readers should verify statements before relying on them. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Accordingly, the information provided should not be relied upon as a substitute for independent research. does not have any responsibility for updating or revising any information presented herein. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Applicable laws may vary by state or locality. Additional information and exceptions may apply. This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Sign up for Mint to access tools to help you reach your financial goals, including personalized insights, custom budgets, spend tracking, and subscription monitoring - all for free. This article was originally published on the MintLife Blog, where you can find more personal finance news and advice to help you make smarter money decisions. By using their easy-to-use monthly budget template, all you have to do is plug in your figures, and make sound money decisions that are good for you! Click here to try Mint for free. You’ll find valuable tools to help you stay on top of your finances by organizing and categorizing your spending for you. If you’re looking for the easiest and best free way to keep a budget and stick to it, visit. A budget can essentially help straighten out your finances if necessary, and allow you to get a clear picture of your financial health.Ĭlick here to download the XLS file monthly budget template.xls. At that point, you’ll be able to see if you’ve still got money leftover, or if you’re digging yourself into a financial hole. By using a budgeting tool, such as a simple monthly budget template on an Excel spreadsheet, you can easily tally up your income, expenses, and figure out the difference between the two after all factors have been considered and identified. Putting a budget together requires a resource that helps you organize your finances.
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