Let's Combine Income Bills

Putting Your Budget All Together

Lets take the information from your lists to combine your income and bills and either put it in a spreadsheet on the computer or put it down on paper into a worksheet.

I use a very basic worksheet on the computer. For me the simpler the better. I've tried the fancy worksheets but just never keep up with them. So I have found this to be the simplest way to combine income and bills.

Our goal here is to make sure the bills are paid and paid on time, as well as start a savings account or two for emergencies and other items. So lets put our lists together.

I start with 3 columns for each pay period. At the top of these 3 columns I'll put in the pay date. The 1st column I'll label and list the bills that are due between that pay date and the next pay date. The 2nd column I label and list the amounts due to be paid out. The 3rd column is for the due date to be listed, this column helps to decide which pay period to pay which bill out of.

Did you notice I added some other items under each pay period? Yes, we have to budget in for groceries, gas or other transportation and a spending allowance. Yes a spending allowance, you work hard and need reward yourself as well. You may have to adjust these items up or down as needed.

Once all the bills, amounts and due dates are listed, we total up the amount column. Hopefully this column will total less than your paycheck. Below the bills total put in your pay check and any other regular income amounts. Then subtract your bills from your paycheck. Do you have any money left over? Yes, good. Any amount left over is what we are going to use to either start paying down your debt and start a savings for emergencies. In my example (this page is under construction - example to come soon) I have 4 saving accounts listed, two of those can be lumped into one savings account, perhaps labeled non-monthly bills. This account would include your savings for bills you pay at later dates like insurance, automobile tags, etc. By having this account your making sure you have the money to pay those bills when they come in, instead of scrambling around trying to wonder where to come up with the money to pay them.

Any other savings accounts keep separate so your not tempted to use part of another's savings for what it is not intended. Follow this link to learn more about these savings accounts. Try to start at least 2 other savings accounts one for emergencies and a Christmas or other fund. Regardless how little you put in them each pay period, try and make it a habit of adding something to them. It will add up and when an emergency arises like a car repair or home repair it sure helps to know you having something saved to get it fixed right away. Now that you have combined your income and bills into your worksheet what do you do with it....Lets move on and see.... click here. Using your budget worksheet...

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