Keeping track of your money is a fundamental step towards financial well-being. It can help you reach financial goals such as taking a holiday, saving for a mortgage deposit, or paying off debt. So we are giving away a free personal budgeting tool!
How to Keep Track of Financial Goals
So, what’s the best method to reach your financial goals? The answer is with our Free Personal Budgeting Tool!
Creating a budgeting system will help you become aware of your earning and spending behaviours. It involves monitoring and categorising your transactions to identify insights from the results. To assist with this regular task, we go through the basics of budgeting and share a free budget tracker that makes budgeting a seamless experience.
The Basics of Budgeting
Spend less than what you earn. It’s a simple rule to manage your money. Yet, many people struggle to follow this rule and it creates a detrimental situation that ultimately leads to financial distress. Budgeting will help you save money more efficiently to then use it wisely.
No matter the reason it can be difficult to decide the best way to allocate money to maximize returns, minimize risks, and reach financial freedom. The Personal Finance Flowchart will break down step by step the best ways to allocate money.
How To Set Your Emergency fund.
Saved money should be initially allocated to an emergency fund. This is in case something halts your income-generating activities and you need to cover expenses while you recover.
You should aim to accumulate a certain amount of savings that can cover fixed expenses such as food and shelter for a chosen time frame. Additionally, your emergency fund should aim to include savings for unexpected expenses such as a medical emergency or a car repair.
For example, your fixed expenses could be $2,000 per month and you could add $500 for unexpected expenses. If you want an emergency fund that covers you for 6 months you should aim to have at least $15,000 ($2,500 x 6) in your savings account.
Look at Reducing Debt
Budgeting can help with organising debt repayments. Personal loans or credit card debt usually have high-interest rates which potentially slow down your financial progress.
Cutting down on unnecessary expenses will equate to more savings which
you can then use to pay off debt.
Why is Budgeting So Important?
Earning money is difficult but spending money is very easy. Tracking your income and expenses will provide a whole picture of how much you are earning and where your money is being spent.
If you have no control over where your money is being spent, you won’t know when to stop spending. For example, you might be spending $200 every weekend on expensive cocktails and restaurants. That equates to $10,400 per year of money spent dining out.
By setting limits on specific categories, such as dining out, you will be able to control impulsive purchases as you have limits and annual figures give a better perspective.
Additionally, creating a budget will help determine patterns in your transactions. These insights are extremely beneficial as they can manifest your behaviours and motivate you to alter certain activities.
Budgeting is essential to control your impulses and stay organised to achieve your financial goals. Later in the article, we provide our Free Personal Budgeting Tool!
Budgeting: Set Up Your Financial Goals
Everyone has different reasons to start tracking their budget. Whether your goal is to buy a new computer, increase your savings, retire early, or simply monitor your spending, the first step is to set up your financial goals. This will help you plan and organise where you want your money allocated to reach those goals.
Free Personal Budgeting Tool
Once you’ve set those financial goals it’s time to start tracking your transactions.
Access To Free Personal Budgeting Tool.
This tracker will help you track your income and expenses automatically by
combining the capabilities of Google Forms and Google Sheets.
Google Forms creates the perfect data entry tool to comfortably execute your transactions from the comfort of your smartphone, tablet, or computer. All transactions are gathered in Google Sheets and the tracker seamlessly organises them by period, creates summaries, calculates statistics, and versatile insights.
It’s the perfect tool to monitor earning and spending habits as it translates raw data into a story. It requires minimal input and there is no need to ever make copies of different months or financial years as everything is combined and naturally separated.
Check out this video explaining step by step how to install and use it:
Free Personal Budgeting Tool – Prophets Take
Budgeting is the initial step to staying organised with your personal finance. It helps you achieve goals and ultimately benefits your financial well-being.
We hope this tracker simplifies the work behind managing your money. It serves as a convenient tool with the goal to motivate you to stay on top of your budget and benefit from constructive insights. Furthermore, if you’re looking for a Personal Finance Flowchart, check out our article on Personal Finance or once you think you have mastered the fundamentals of budgeting maybe start looking to Invest.