How to Budget on a Budget

Microsoft Excel has become my friend when it comes to budgeting. I do not make a lot of money, and when I want to plan for taking mini weekend vacations, or set aside money for bills that come out quarterly, I need to plan ahead. By using the formula settings within Microsoft Excel, I have created a great at-home budget counter listing.

I break down my rows in the dates from the 1-31 of each month, listing the bill that is due and the amount. In the columns, I mark my weekly pay amounts and at the bottom of each column I set the formula to subtract all my bills from my total weekly pay. I always make sure to under-estimate my pay so that I am never short on bills, and I over-estimate costs such as gas and groceries. Over the years, I have also started setting aside amounts each week for "going out" as well as a "vacation slush fund". It has been a great way to track all of the money going in and out of my checking account.

I budget ahead roughly 3-6 months depending on what larger expenses are in the future. For this summer, I started planning through August in January. I would set aside $100 to $200 each month in my vacation slush fund and then mark it on Excel as my "going out" money on the weekends that I planned to use the funds. If I know of an upcoming car inspection, or special expense or concert, I also build this into my budget ahead of time so that I have the money in advance.

With tough economic times, it has become harder to pre-plan a budget. I do not invest, or have a savings account, so this has been the simplest way for me to learn how to set aside money for my future activities free of cost. Seeing the breakdown on the spreadsheet months in advance also helps me to see what months I need to be more frugal, and what months I have some leeway for spur of the moment activities that may cost money.

Budgeting on a budget using the programs you already have on your computer is a great way to learn about your spending habits and help you to plan for the future. I recommend doing a basic online tutorial to learn how to set up your Excel spreadsheet for math formulas (for example=Sum(A1:A2 )) and within a few days you can have all of your expenses in front of you to stay organized and spend wisely.