Basic Budget

Get back to basics with our Basic Budget!

Pre-formatted and pre-formulated excel spreadsheet for your filling pleasure.

Discipline = Freedom. Budgets are not restrictive.

Budgets allow you to be intentional with your money and direct it where you want it and need it.

How to use this sheet:

1. Review your numbers for the last 12 months, not a calendar year, because you want to be sure to capture any annual subscriptions or periodic payments like Insurance Premiums, and you don’t want to miss something added recently.
   • If you see something questionable, dig in! You may see some costs you can cut.
   • If your business has drastically changed recently, then get the average from only that period and add in any annual subscriptions, etc.
   • For example, let’s say we’re in August, so run it from August 2020 through July 2021 (or, if 2020 was not a normal year for you – I don’t know why (in my most sarcastic voice), then refer to 2019 as an extra spot check.
2. Get your monthly averages – for both income and outflows, not just expenses buckets.
   • You don’t need a bunch of granular categories, 5-10 spending categories is all you need to silo your spending for budgeting and planning purposes. Don’t worry – we have them all listed for you in this download!
   • Your goal is to get an accurate monthly average based on a 12 month time frame, even if you need to re-create it as it should look in the future, like a forecast of what you expect to happen. Just don’t ignore the past, because it often dictates the future, unless we’re aware and can change it.
   • To be conservative, we go low on income and high on expenses. Worst case scenario thinking here is good to have.
3. Once you’ve reviewed and gathered your monthly averages (very important for seasonal businesses like jewelry!), then list them out in the spreadsheet provided.
   • Our formulas auto-calculate the rest as a running balance down the side!
   • Average monthly income at the top followed by your outflows with savings first! Then debt repayments, and the rest of your outflows and operating expenses.
4. If you’re running out of money before you get to the bottom of your list of expenses, then something needs to be adjusted.

Keeping core costs low makes a lasting impact on cash flow stress, while increasing income may help reach goals faster.

Analyze where you’re overspending – or do you just need to create more income?

Are you covering everything you need to be?

Hire us if you want help! Click here to complete our client interview and schedule a free consult. 

Are you looking for active budgeting? We use this Basic Budget to get started before we use the really cool tools! Get this basic budget to set your spending and saving targets in a budgeting app.

We love YNAB (aka YOU NEED A BUDGET), and while we aren’t affiliated, we’ve been abusing it like a religion since January 2018.

Please use our referral link, so we both get one month free and can geek out together!