Is it difficult to keep track of your finances? Does your salary usually end before the end of the month? Can’t get your money back to make your dreams come true? Doing weekly financial planning can be an easier and more practical way to take better care of your finances, control your spending, and thus save to do what you want.
In fact, it is worth mentioning that the budget is the money available to pay the bills. But that doesn’t mean it has to be all the money you earn, see? You can allocate part of this income to other investments, being prepared for any emergency.
In this post, we are going to help you get things started, setting up an impeccable household budget. Prepared? Then check it out!
Define Your Goal (S)
Have you ever tried to organize your finances and did not continue? Have you even started making a financial spreadsheet but left it aside after a few days? Know that having clear goals makes all the difference in your motivation to organize and keep track of your finances.
With well-defined goals, it is easier to always keep in mind why frequent monitoring of your accounts and actually do that.
So, stop to think: what are your short-term goals? Pay off debt? Saving for a trip? Saving to buy a car or a motorcycle or to renovate the house? Make a good reservation for the arrival of a baby? And your medium and long-term goals? Saving to buy a home? Invest in children’s education? Save money for retirement?
If your monthly energy bill is usually 50 dollars, you can set a goal to reduce it to 40 dollars, adopting some best consumption practices, for example. If spending on weekend getaways is consuming your budget, you can choose to go to cheaper places or reduce the frequency.
Define your goals and use them to stay motivated in your savings goals.
Analyze Your Income
What are your sources of income? Do you have a monthly salary? Do you receive benefits such as unemployment insurance, alimony, or retirement? Do you receive rental property (s)? Do you have other sources of income (such as beaks or freelancers)? Did you have any recent sales gains?
Writing down all your earnings and analyzing the frequency of your receipts is the first step in organizing your budget spreadsheet.
Don’t have a personal bi-weekly budget planning spreadsheet yet? Download yours here.
Organize Your Expenses
The next step is to write down all your expenses. And the idea here is not to separate them by types (expenses with transportation, health, education, etc.). But group them according to the time of payment of each one, in order to have better control of their accounts. See how simple it is:
- Expenses at source – taxes and direct payroll discounts, such as business health plans, transportation vouchers, etc .;
- Committed expenses – fixed monthly accounts and installments already assumed; ex .: water, electricity, school fees, car payment, gym, etc .;
- Daily expenses – daily food, fuel, pharmacy, salon, café, bar, restaurant, nightclub, cinema, shopping for clothes and electronics, car review, tire change, etc .;
- Atypical expenses – unplanned and/or emergency expenses, such as medicines, claims, etc.
According to financial experts, in order to have balance in the accounts, the ideal is that your expenses already committed monthly do not exceed 60% of your net income. Thus, it is possible to have a percentage to spare for day-to-day expenses and for possible atypical expenses that may arise.
In addition, by planning all your expenses, you can have a better idea of where you can save. After all, you need to set aside some money to invest in your goals.
Project Your Cash Flow
Cash flow is nothing more than the control of monthly inflows and outflows, serving as a thermometer to know how much your bank account is going. Based on fixed and variable expenses, you can predict how much you will spend bi-weekly, as well as how much money you have available to pay bills.
If it is still not possible to save, you will know at least when it will be possible to start doing so, as the cash flow signals surpluses in the budget. From there, you can think about the dreams to realize and the respective planning for that!
Calculate Your Weekly Budget
Having recorded and analyzed your income and expenses, you can now begin to better plan your budget in order to achieve your goals. To do this, start by doing a simple calculation:
– Consider your net income (your income fewer expenses at source):
Ex .: $ 5,000 / month
– Subtract your committed expenses from it:
Ex .: $ 5,000 – $ 3,000 = $ 2,000
– Set aside a percentage to invest in your goals:
Ex .: $ 2,000 – $ 500 (savings) = $ 1,500
– Now, divide what’s left by the weeks of the month:
Ex .: $ 1,500 ÷ 4 = $ 375
This final result shows how much you have per week for day-to-day and atypical expenses. If you prefer to have even more control, you can divide this result by 7 to find out how much you can spend, on average, daily. Planning your finances like this can be a lot easier than thinking about them just once a month.
Go For Control
The financial lack of control happens precisely because the tendency is to think that it is possible to keep everything organized only in memory. However, do a quick exercise now: review the past week and try to think about how you spent your money. More difficult than I imagined, isn’t it? So the best thing to do is to choose a control method.
You can make a manual control, in a notebook even, noting all your daily expenses. The only problem, in this case, is that relying on memory and committing to writing everything down every day can be a little risky. After all, you certainly have other things to do. So how to solve it?
A very viable alternative is to use spreadsheets to record income and expenses. With them, you can create formulas and obtain balances, sums, and other results that will help you more easily identify your expenses, through consumption charts, for example.
Free Budget Templates
It’s easy, right? You can download our free bi-weekly budget planning templates to manage things more efficiently!