in this video I'm going to show you where you can go to download a budgeting
template that I made in Microsoft Excel that you can use for yourself
and best of all the budgeting template is completely free
Free .99! what's up guys how's your day going it's Mike also known as MK the CPA
and here's my sidekick chipper new welcome to money and life TV guys as you
know the focus and mission of this channel is to help you improve your financial
position career and your life in this video I really thought it would be
helpful if I just give you guys a template that I use for myself and I
created this myself to help me manage my finances I don't know if you guys know
this but budgeting is truly one of the key ways to build wealth for you and
your family it's one of the pillars major pillars to financial success in
your life it's gonna help you save more money budgeting will help you pay off
your debt and budgeting will also help you prepare you for retirement now I
know guys that budgeting is not the sexiest thing in the world you know it's
not thing you like to talk about with your friends it's not the thing it's
kind of boring right he's the thing you don't want to do but I'm highly
encouraging you to set up a budget especially if you do not have one so
let's go ahead and dive right into the worksheet and I'll explain how you can
use this if you so choose to help you manage your finances better
okay guys the only thing you really need in order to use the spreadsheet is to
have Microsoft Excel I actually have Microsoft Excel 2007 I know I'm old
school but that's all you need you just need Microsoft Excel in order to use
this most people are familiar with Microsoft Excel if you don't have it
it's very expensive to get so I highly recommend getting this program if you do
not have it there's a lots of tutorials online of how to use it and the stuff
we're gonna show in this worksheet it's very basic so that most people could use
this without very little help or if you don't know how to use Microsoft Excel
maybe have somebody show you the basics because it's truly not that hard guys
we're not gonna do anything fancy here the spreadsheet is all set up for you so
all you have to do is drop in your income numbers and your expense numbers
and let the spreadsheet do the rest of the work for you so what I did is I
created a spreadsheet it starts with income first then it's gonna go down the
list of expenses like we have our car expenses right here we have charity and
gifts these kind of expenses anniversary birthday charitable giving Christmas
gifts then we're gonna have you know down here we have education
entertainment fun and hobbies a date night gym memberships sports we have a
section for debt so if you have debt payments if you have a car loan credit
card payments mortgage payments medical loans it's right in this section right
here food and household products so this is things like what do you spend the
month eating out how much do you buying groceries every month then down here we
have home rent and living in utility expenses so these are expenses for
living right so your electricity your gas your water sewer garbage landscaping
such as a gardener if you have HVAC service once a year that's gonna have to
be added on your budget and things like that so rent when you know what do you
pay monthly and rent beyond the home so we just have a mortgage but it this
spreadsheet guys you can customize it to your situation which is why I like using
a spreadsheet you can manipulate it any way you want which is why M
my opinion it is still a very useful and helpful tool
down here on the next page we have medical expenses so maybe you have
monthly prescriptions you have to buy vitamins you know maybe you have to see
the doctors in dentist etc then down here we have cellphone or your internet
your if you have subscriptions such as like to Spotify you like music streaming
services Pandora that kind of thing Web Services television services like
Netflix Hulu and that kind of thing think of think of those kinds of TV
services - down here we even have an investment section so how much do you
contribute to your IRA your Roth IRA or a brokerage account or some other
investment vehicle that you're considering so what the spreadsheet does
is it starts with our income so you're gonna put in your net monthly income so
it's the net amount you actually get after taxes and after 401k deductions or
anything that's pre-tax out of your check so when your money
hits the bank from your paycheck the foul let's say you've got a thousand
dollars every two weeks which would be two thousand a month you're gonna put
two thousand dollars a month right here because that's the net amount now in
this example I had a husband and wife both making twenty five hundred dollars
a month so five thousand dollars in total so let me just walk you through
this example and then you're gonna enter all of your expense information and down
here this is how the spreadsheet works it takes your total income which is the
total net monthly income which we had a top which was five thousand which the
five thousand comes from right here so whatever this adds up to be on your
income section of your budget and then it says total expenses okay so these
expenses as you go through your spreadsheet you're gonna enter to the
best of your knowledge your average monthly expense for each of these
categories every single category whether it's your cell phone whether it's
something that you don't even purchase every month so maybe like DMV let's go
to the car section so one expense that I didn't have on my budget for a while as
DMV fee renewal well every year I have to renew my vehicle now sure the expense
only occurs once a year however I like to account for that expense on my budget
on a monthly basis so what I do is if my DMV renewal is $150 a year I take that
number and I divide it by 12 and then I so on my budget I would put $12.50 per
month on my budget so that way I'm always considering that expense even
though it has not occurred yet that way my budget is accurate and as complete as
possible what many people do is they don't budget for certain things and then
they don't have the money when it when those expenses arrive and so they have
to take out debt order to pay those bills not enough gold but nah not with
this I've tried to think as much as possible think through what expenses you
and I have or we have on a daily basis on a monthly basis that impacts our
finances so you're gonna go through here you're gonna enter all of your
automobile expenses or transportation expenses is in this first section you're
gonna enter all these things for Christmas gifts you're gonna budget for
birthday gifts all that kind of stuff all these things and you're gonna drop
in these expenses and what it does is it totals up each expense section right
here so like in this foreign living this is just an example so in this box right
here guys on the car expenses see how this at this first column adds up
there's 500 bucks for just transportation an automobile so what
these columns are for is to give you a perspective of how much that expense is
of your total monthly net income and how much this expenses of your total monthly
expenses so let me show you what I mean so so we have this person has $500 in
car expenses right so four 9950 divided by 5,000 is point zero nine and nine so
that's where this number number is coming from right here it's this expense
is nine point nine nine percent of this person's net income total net income of
five out this column looks at what percent of total monthly expenses does
this auto expense count for so we take 9950 and we're gonna divide it by our
total monthly expenses which adds up down here you won't
that what that is until if it gets to the very bottom here so this is our
total monthly expenses of all of our expenses here and so we take our
automobile divided by four from 750 and that's how we get the twelve point two
five percent which is basically what that is so that's how we get to these
expense totals so we're analyzing it that expense based on the total of your
monthly net income and also based on your total monthly expenses so you can
see which items are large and very impactful items in your finances what's
causing you to spin the most money so guys this is how this worksheet works
what you're gonna do is you're gonna start up here enter your net monthly
income and then just go down the line look at each one of these categories and
figure out what you're spending monthly on average in each of these categories
and to your best of ability drop in the number now if you watch my video of how
to create an accurate budget this will help you get better numbers for this
budget spreadsheet give yourself some time to do this really think through the
numbers of what you spend on average every single month in these categories
and this will truly help you arrive at a very accurate budget in this example
it's showing that 82 percent so this person's expenses is 82 percent of their
net income now we take four thousand one twenty four fifty our total expenses we
know our net income in this example is five thousand dollars and there we go
there's the 82 percent which is showing right there and this is a hundred
percent because this is a one hundred percent of the expenses on the worksheet
because as you guys know or might know I also I also have videos on saving money
and I always like to talk about how my wife and I save over fifty percent of
our net monthly income well this spreadsheet helps me gauge
where I'm at in that process of how much of my net income can we save every
single month and so I think you'll guys will find this as a useful tool for
yourself and your goal will be to increase the amount of money you get to
keep at the end of every month for yourself so you can invest it so you can
use it to whatever purpose you need to like whether it's pay down your debt or
save more money or whatever you're hoping to achieve at the end of the
month this person can save 875 dollars so in this example this
person is able to save seventeen and a half percent of their net monthly income
every single month and that way that's calculated is it's 875 fifty divided by
five thousand dollars net income is seventeen and a half percent so that's
how we're arriving at that at the very bottom of this worksheet it breaks it
down by category so you can get a visual effect of where your money's going guys
feel free to use this let me know if you have questions if you have suggestions
to improve this or what would be more helpful let me know I'm happy to alter
this to make it more accommodating feel free to adjust the worksheet you can use
this please share this information with others you can download this on money in
life tv.com I will leave a link in the description
section down below directly to the website where you can go to download
this for yourself and please feel free to share this budgeting template with
others so if you go to money in life tv.com this is where you can find this
worksheet and if you just click download right here you just click this picture
this is how you can get the file and just click yes and then the file will
open down here and then you will have the spreadsheet if you guys liked the
video make sure to drop a like before you leave let me know if you found this
information helpful and if you find the spreadsheet helpful so far I've given
this to a few of my friends and they've use it in the real world I said be my
guinea pigs let me know if you find that if this works and they're very pleased
with it so I'm very happy to hear the time I spent making this has not been in
vain people are you starting to use this and they're starting to enjoy working
with it and it gives them a very clear picture of what their finances are on a
month-to-month basis if you're new to our channel please consider subscribing
especially if you guys want to learn more about personal finances more about
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love you thank you so much for your support I hope you have a fantastic week
and remember guys on this channel chipper and I share information that
will help you live your life on gauged love you guys see you next week