Money matters have always been very confusing for many people. Just as you need event organizers and planners to schedule your time, you can use a monthly bill organizer to budget your monthly income and make a savings plan along the way. Here’s how.
- Download. Start by downloading an application that will create the organizer for you. One free alternative is to use Microsoft Money, which is a free application that you can use. Apart from Microsoft Money, you can also create a simple organizer from Microsoft Excel or even a word processor such as Microsoft Word. In Excel, make use of the columns, while in Word, you will need to create your own table. You will need to create at least five columns for gross monthly income, housing expenses, automotive expenses, debts, and other expenses.
- Gross income. In the first column, you will write your gross income, which will be the sum of all money coming into the household. The usual source for the income is the job. If there are two people or more contributing to the household budget, you should add these up. Other sources of income are part time jobs, sideline income generating projects, and investments. One of the best ways to get an accurate monthly gross income is to get the annual income and divide it by the number of months.
- Housing expenses. On the next column you will add all expenses related to housing. These include the loans that you have on the house, the mortgage, the property taxes, the bills for electricity, gas, water, and other utilities such as the internet, and repairs that were made around the house in any given month.
- Car expenses. Most people cannot buy their cars in whole, which is why many people will need to pay car loans. Even if you do not have car loans, you will usually have to pay car insurance as well as maintenance expenses. You will also write the amount you spend for refilling the gas tank each month. If you have repaired the car, also write down the expenses that the repair has incurred.
- Debts. For a surprisingly large number of people, a good portion of the monthly income goes to debts that need to be paid. Add in the credit loans that you need to pay off each month along with other debts. If you have several credit cards, you will need to add up the debts that you own from each company.
- Miscellaneous fees. Finally, write down your other remaining expenses in the miscellaneous column. Some of the common expenses here are spending on food, clothing, entertainment, subscriptions, medicine, clubs, life insurance, vacations, et cetera.
- Net income. To get the net income, which is the actual money that you have left each month, subtract each column from the monthly gross income. Positive cash flow means that you have some money left, while negative cash flow means that you do not earn enough income to support the various expenses that you incur each month. After creating the document, simply print it. You can also create several copies that you will fill up as each expense is encountered.
Determining just how stable your finances are is easy if you use a printable monthly bill organizer to keep track of the money that goes in and out of your funds.