“Budgeting completely changed my life. Here's the budget template I've been refining for the past two years.”
Hey all, long-time lurker here, first time poster. I want to share a budget template with the community that I’ve been iterating on for the past two years. Budgeting has completely changed how I perceive my income, expenses, and savings, and I can’t imagine where I’d be today without it. I hope this template can help others out there who are looking to get a better understanding of their finances or don’t know quite where to start.
Before jumping into the template, I just want to give a little background on myself. For years I always thought myself as decent with my money. I never found myself too deep into debt, saved a little here and there, and always managed to get by without too much worrying. Well, that was all fine until I ran into an unexpected financial hardship. Suddenly, budgeting became not just a smart thing to do but imperative.
Looking back, I wish I’d started budgeting sooner. I really didn’t realize how little I knew about where my money was going until I started visualizing it. And that’s exactly how this budget came to be.
This template was made with the following goals:
1) Clearly visualize the breakdown of income, expenses, and savings
2) Automatically update when revising expenses, income, or savings amounts
3) Not rely on third-party financial tools which collect sensitive personal data
This template is best used for someone who isn’t actively paying down debt. Of course, if you’re in debt, you want to pay that down ASAP before putting money elsewhere. This template is about finding a balance in your take-home pay, and how to split it between an emergency fund, short-term savings, long-term savings, daily spending, and of course expenses.
Daily Spending – a checking account for any daily spending. This is what you use to buy a breakfast burrito or grab a drink with a friend.
Expenses – a dedicated checking account for expenses. Phone bill, internet, rent, etc. all automatically deducts from here.
Emergency Fund – a savings account which holds cash for between 3-6 months of expenses, just in case. Once this gets to a level you’re comfortable with, you can stop or reduce the amount you regularly deposit.
Short Term Savings - a savings account for short-term savings. This can be defined however you want, but I think of it as money I’ll spend in less than five years. This could be for a vacation or a big expense like a new computer.
Long-Term Savings - an investment account for money you won’t want to withdraw for probably over 5-10 years. This is for something big, like a down payment on a house or just a place to invest in the long-run. You don’t think about this money, and it’s at the mercy of the market.
It’s pre-filled with what an example budget might look like.