Budgeting For Beginners | How To Create A Budget From Scratch (2024)
ฝัง
- เผยแพร่เมื่อ 3 ก.ค. 2024
- A step by step guide on how to create a budget from scratch with free Excel spreadsheet!!
FREE SPREADSHEET TEMPLATE: docs.google.com/spreadsheets/...
(To make copy go to "FILE and MAKE A COPY")
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Mint Mobile (save on your cell phone): mint-mobile.58dp.net/rn6rJQ
My Favorite Personal Finance Books
Your Money or Your Life: amzn.to/3VExSUV
The Simple Path to Wealth: amzn.to/3RODWJp
Die With Zero: amzn.to/4bjwQ6D
Chapters
00:00 Start Here
00:49 Step 1: Get Set Up
02:02 Step 2: Track Your Expenses
05:14 Step 3: Subtract Spending From Income
07:02 Step 4: Analyze Your Expenses
11:14 Step 5: Create Saving Goals
12:33 Step 6: Constantly Revisit And Revise
Creating a budget is something that empowers you to have the control over your financial situation. In this video, I give a step by step guide on how to create a budget from scratch.
Step 1: Get Set Up
Before you begin creating your budget, you first need to gather up the materials you need that allow you to create it. The first thing you need is all of your statements that have your spending from the last month like bank statements, credit card statements, and debt statements. The second thing you need is to open up the free spreadsheet linked above. To create a copy click "File and Make A Copy." Now we can begin creating our budget.
Step 2: Track Your Expenses
The first step to making a budget is to take the time to track all of your expenses from the past month on the spreadsheet. This is something that will take time, but will allow you to see the entire picture of your financial situation. First, fill out the date and expense you made. Next, in the "Expense Category" column, choose the correct category for the expense. Then, in the "Spending Type" category, choose if it is a "Fixed Expense," meaning the expense is the same amount each month like rent; or "Variable Expense," meaning the expense is a different amount each month. Next, choose if it is a want or need from the "Want/Need" column. Finally, put the exact amount down to the penny in the "Amount" column.
Take the time to write down all of your expenses from the past month and off to the side, the charts will automatically populate giving you a clear picture of your finances.
Step 3: Subtract Spending From Income
A sustainable budget is one where you are spending less than you are making. To figure this out, you simply need to subtract your spending from your income. On the bottom of the spreadsheet is a tab labeled, "Budget Breakdown," go to that sheet. The first table you should put your income sources. Off to the right the information will automatically populate and it will give the amount remaining. If you are spending more than you are making, then you need to analyze your budget.
Step 4: Analyze Your Expenses
Since we tracked all of our expenses on the spreadsheet, we can easily analyze our expenses to see why our budget isn't sustainable and how to fix it. In order to do that we need to review three things. The first is want/need spending where we can simply cut out our wants to save money. The second is our variable expenses where we can analyze if anything can be lowered or cut out. If there is something that can, go to the "Budget Breakdown" tab and record it on the "Variable Expenses Savings" table. The third is our fixed expenses and see if anything can be lowered or cut out. If there is something that can, go to the "Fixed Expenses Savings" table to record it.
Once you analyze the different things you can save money on and input them in the tables, it will automatically populate on the blue table and you can see if you budget is sustainable with the savings.
Step 5: Create Saving Goals
Once you create a sustainable budget where you are no longer spending more than you're making, you can create savings goals. On the spreadsheet there is a tab labeled, "Savings Goals," this is where you will record your financial goals. On the top is the amount remaining after all your bills are paid and you can use that to create realistic goals.
Step 6: Constantly Revisit And Revise
There never comes a point when you are finished with your budget, but it is something that you need to constantly revisit and revise to make sure you are living in a sustainable way. Over time your lifestyle and spending habits will change and so you have to constantly be updating it. However, once you create a sustainable budget, it will empower you to have more control over your financial life.
**I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You are responsible for the financial decisions that you make. Links above are affiliate links where if you click and order, I will receive a commission at no cost to you. ** - แนวปฏิบัติและการใช้ชีวิต
What are other "how to" videos you'd like to watch?
Loving your channel! Wish more were like it.
More 'life hacks' - like where to shop, thrift stores, repurposing items, fixing things - heck - that could be an entire channel onto itself!
How to buy nothing?
How to do a no spend year?
Budget travel
Great video. I've love if you could share a video on how to use credit cards more responsibly
How to shop on Amazon and save money videos 😊
I divided "Grocery" into "Food" and "Junk food". Because fish and ice cream are groceries, but fish is what I need and ice cream is what I want. I was unpleasantly surprised that junk food accounts for 1/3 of my grocery spending.
This is smart.
I'm going to do this, thank you sm
Austin!!! Doing this helped us discover SCAM TRANSACTIONS! Thank you so much! My husband and i do not share a bank account, he doesn't really check his account history... Long story short, we sat down to go through some accounts and found some fake companies taking small yet frequent sums out. The bank has refunded us close to 500 dollars. Again, thank you ❤
Best spreadsheet and instructions I’ve ever seen! I’m ADHD so I need simplified sheets and step by step instructions!! I’m now a follower! Thank you so much! 🙏❤
Hello Austin, I am new to your channel and subscribed immediately. Your speadsheet has been a total gamechanger for me, thank you so much for offering it for free!!! Unbelievable what a difference it made for my budget - I realized how out of control (unintentional) some of my spending was (esp in groceries and restaurants) and cut those expenses this month by almost 60% without feeling deprived. My savings were higher this month than they have been in years. Thank you so much, I love your chilled out energy, down-to-earth advice and quirky sense of humour. You have a fan for life now! Much love from the Canadien Rockies xx
Budgeting does not have to be complicated. Thanks Austin!
I really appreciate the Google sheet that you created and the explanation on how to use it is perfect. I just subscribed and I'm excited to see what else I can learn from you. 😊
Oh my gosh! How GENEROUS of you to include all those formulas and tables in your FREE budget worksheet! Thank you. I can't wait to use it. 😊
Just trying to make you proud, Julie Markham!
@ElAgustin Well, by golly, you did! 😄
DId a budget for the first time with my husband after 13 years of being together and 8 years of marriage, and we discovered much - thank you for being a part of our new chapter. We'll be back. Any chance you can do a video (if you haven't already) on ways to stay accountable as we move forward in the beginning stages? Thank you, Austin. Signed, "thanks for the wake-up call" from Canada
This is the best video i HAVE EVER SEEN TODAY. - God bless you!
Credit card statements. I only use credit cards to pay Mint Mobile and my husband's train tickets. My husband covers our medical insurance. No car payment. No mortgage. I keep cutting our grocery budget. I barely need to buy any this week.
I love watching you, it really feels like I’m sat chatting with a friend 1-2 times a week, bliss x
haha, I'm glad!!
"sat chatting"??
A great update. I am a spreadsheet addict. They make everything so easy to manage and you can adjust them to suit your requirement depending on how complicated your budget is. Mine have really expanded over the years but they still help me work out everything.
I love spreadsheets too!
Thanks for the spreadsheet Austin, loving your channel!
Thank you. Thank you. I love that you gave the excel spreadsheet.
13:02 Thank you so much, Austin! This is a golden nugget! Not many people share stuff as useful as this. ¡Muchísimas gracias!
Thank you so much! This is a life-saver!
This is easily the best free spreadsheet I've seen made for budgeting. Thank you so much!
Thank you!!! Great video and thank you for the free spreadsheets! You make this so simple, which is what I needed!
Thanks for the content! Just completed my budget, very eye opening.
Finally a great video in plain and simple English to understand. Your video was very helpful thanks!!
Nice spreadsheet. I like the idea of incorporating need/want, fixed/variable, drop down classification, etc. My own compares monthly actual spend versus target spend by subcategory. This forces me to "budget" in addition to track cash flow.
thank you so much for this !! alleviated a lot of stress !!
Thank you, Austin!
I really appreciate this resource and video. Thank you so much for making and sharing.
Absolutely correct. I was doing this and it works. I can use the left overs for savings
Thank you so much for sharing this information, Austin. It's very helpful! 👍
Bro, you're a life saver!
love the step by step guide and spreadsheet. Nice job!
So simply explained thank you a great help
Thank you so much. This is so helpful.
I like how easy-to-understand and organize this video was. As a 21-year-old, I *definitely* needed these tips. Thank you!
You are a good teacher. Very useful video.
wow!!! I can't belive the VALUE on this video and template. THANK YOU SO MUCH!!!
Thank you for this very helpful video AND template! Both are so easy to understand and follow!
thank you so much it is very helpful.
Very helpful, can't wait to use your spreadsheet!
Thank you Thank you Thank you for this spreadsheet!! I've been looking for something similar and couldn't find one, I even tried making my own in Excel and teaching myself formulas, but wow, this was already prepared and so easy to just plug in my numbers. And free!! Thanks again
Thanks so much! Have been very lucky to not have to budget until lately, with cost of living on the rise for all of us... I'm going to sit down with my husband and we are going to get a handle on our finances.
Thank you so so much for making this stressful time easier for us ❤
This is exactly what i was looking for. Thank you so much
Thanks you so much for this
Very helpful, thanks 🎉
Thanks for this very detailed spreadsheet. I was going to learn Excel for this reason. I only know a few shortcuts and basics, so this saved me time on learning how to create budgeting spreadsheets
Excellent video! I like how you incorporated everything in one spreadsheet. It is complex yet simple. I appreciate the effort you put into this spreadsheet and video.
I appreciate it, Dina! Tried to make it as simple as I could!
Congrats on 56k subscribers! Looking forward to the day when you get to 100k. You deserve it Agustin 😊
I appreciate it! It's been a slow, but steady rise. There's been a growth spurt the last month or so, which is nice.
Thanks a lot for this video
Well done, El Agustin!
Hello Austin Williams, I hope you find this message well. I just started creating a budget from today and it's taking a lot of time. Thank you for providing the spread sheet. I am very excited to bring spending and saving to sane piont in my life. Thank you very again. Best regads, Greg
Excellent 👌 video
Budgeting is very important, especially for Saving then investing.😊
❤❤❤thank you so much, Austin,God bless you😊😊😊😊
Thank you!
I’m so glad I found your channel I have been trying to budget and save money for the last couple years but failing miserably, you’re a god send my Dude!! Thank you!
I started budgeting about 3-4 years ago and I'm still a work in progress.
All the best 👍🏾🙂.
Great video!!
This is so cool! Being a college student, this is really helpful❤
Thank you so much! I just found your channel as I'm trying to make positive changes in my life. I've been overwhelmed by the idea of budgeting but this makes it very clear so thank you so very much. Excellent content on this channel. So refreshing and helpful.
Awesome!!! I'm glad!
Thank you man really valuable!
This is an excellent start to the budgeting process. If fact, I will be downloading the spreadsheet/workbook and recommending this video to those that I help set up a budget as you explained tracking very well. You do need to know where you are before you can budget. Now, for a “plan” going forward, or as it is called, a budget? Folks need to know how to account for (calculate and save for) sinking funds (non monthly expenses).
Thanks for the template. Customized it a bit to suit my needs a bit more, but great starting template. Thumbs up!
Love the Video and love the layout.
Thanks!!
Thanks man
THIS IS GOD SENT! I MEAN VERY APPRECIATIVE FOR THIS. I HAVE STRUGGLED FOR SO LONG
Glad it helped!
This was so Fricking helpful thanks MAN!
Very Good Video
Love this Austin, thank you! Keep up the great work dude. Much love from Cambridge England 👌
I appreciate it!
This is so smart, i have my own version of how i keep statistics and its something similar to this
I love these series! Can you do a budget update, monthly spend vs savings, end of year earnings vs savings, etc! How to save for big goals, how to live lean are a few more ideas 😊
Thanks for all these ideas! Will definitely consider some!!
THANK YOU!!! This is a huge help!
I'm glad!!!
I appreciate your hardwork and in sharing your spreadsheet.
I appreciate you watching!
Thank You for this amazing Video Agustin! Very helpful :)
Thanks for watching!
Trying to make a positive change financially. Thank you so much!!
Best of luck! Baby steps!
Tank you for your videos they are very helpful.
I find your channel recently I been watching them all. I’m in a mission to pay all my debt.
For years I was trying to figure it out a different way of living but sometimes advice from family and friends was not enough it seems that we all live paycheck to paycheck. Until I resent find a few good channels like yours.
Thank you so much!
I’m in LA, and living is expensive than ever but learning and practicing what you talking about.
I’m living better!
Awesome! Yeah, I've been thinking about moving locations recently and my cost of living would increase which is scary, but also I think if you base your life on spreadsheets and numbers you can miss out! It's all about finding the balance!
Fab video Austin! I always make a cuppa ☕️ when I watch your videos, it’s like catching up with a friend 👍🏴
Haha, thanks!!
you are a Godsend ... I recently filed for bankruptcy and I don't want to fall again.. I want to learn from my mistakes and failures. Thank you!!
I use homebank software for budgeting. It's free and easy to use but only on desktop. I like that it can show a graph of my balance so I'm easily able to tell how much money each paycheck is giving me to save after expenses. I never used variable/fixed or need/want because I just made my categories so specific that I know that specific category is a variable want but I'll try to add it to my system and see if it makes a difference.
Super impressed with this. As someone who has a real resistance to spreadsheets, this makes it all very do-able. Thanks!
Thanks! I actually love spreadsheets and numbers. There's some magic in numbers I think. The truths of the universe are in numbers!!
Sounds like Foundation 🤔
Seriously, this should be taught in schools.
This is a great video PERIOD! Thanks for your time…
I appreciate it! Hopefully it helps you in some way!
@@ElAgustin I will implement it next month…I’ll keep you posted how well it works
Very helpful video! Thank you for the link to the spreadsheet. You have to admit I don't want to sit down and do the numbers because I know for a fact that I'm way over budget and making the changes and the cuts is what's really really hard for me. 😢 My mother lives with me and she's kind of set in her ways at 88 years old and it's hard to ask her to change things like how we watch television or how we get internet, even what we eat on a regular basis. If you have any advice on those things I guess that would be a good video to do. LOL by the way I enjoy learning things like this from younger people because you have a good perspective and you give us older people hope of doing things a little bit better for our lives!😮
"When your Outgo exceeds your Income...
Your Upkeep will be your Downfall"...
I've loved this little quote since I first heard it back in high school.
Thanks for this budgeting tutorial, Austin. We have been doing something similar but it has been very time-consuming as we have been recording monthly spending on one document and then sifting through our 3 bank statements and this document to allocate all the entries into categories in a spreadsheet at the end of each month. We then analyse our totals without the aid of any charts. I particularly like the idea recording needs and wants. Can't wait to try your spreadsheet. In future videos I'd like to see tips on ways to economise and reducing spending on wants.
This is a great video on making a budget. When I have some time to do it, I'm going to run the video and setup a copy of the Google Doc. It's going to be a bit time consuming, so I'll have to take out some solid time to do so.
It definitely takes time!
Metta Of Breeze
清风一阵
清风一阵 一身轻。
人意就成 那一回?
白饭清茶 有深意 。
清晨泽恩 送和平。
Metta Of Breeze
The soothing breeze ease and lightened one's feeling.
When is the moment ?
When one's metta fulfilled....
When plain meal and tea
Can quench thirst and ease hunger...
When the gratitude owned, Holds the desire for peace to all...
Thanks Austin ! This really simplifies really being able to track our spending. Will my husband take the time to do this ? N-O, but I would, even though it’ll take me a while. I want to know what we can do to improve. We don’t go out to eat, but I think we may make up for that savings in the area of wants. 🤣😂
Thank you for this...I'm a late bloomer at 40! I havnt been good with my financial obligations all my life. (Impulse buyer!) So this really started me on my way...thx 😊🙏 *Also if you could do one on building up your credit score, and what credit cards are best!!?* 😉
Thank for video, Austin! I've been watching your videos on economics and budgeting for a while now. Can you talk about two things? About investing in stocks or bitcoin? Do you do that? And a question about budgeting. What if I live in a country and make transactions in both dollars and lari? How do you properly manage a budget in two currencies?
❤ Awesome Video as always!
🌟 I really enjoyed the way you explained it.
Tips For Creating An Effective Budget-
1. Know The Purpose Of Your Budgeting
2. Make an Irregular Expense Plan
3. Know Your Income
4. Determine Your Monthly Spending
5. Set Reasonable Goals
6. Track Your Spending
7. Try Out Different Budgeting Plans
8. Create An Emergency Fund
👉 Stay connected & keep up the great work.
Love your videos. Where do you put sinking funds in your budget
This is amazing. I am looking to purchase a home by the end of this is a reality check. My question is, "Do I just continue to add to this or do I save the spreadsheet each month?" Thanks again!
Hi, I love this video! And your tool is just what I need! But, will it work on a MacBook?
I found this spreadsheet just AMAZING!!! I started using and loving so far. One question: how do I do monthly? I create a new spreadsheet for each month? Thanks
Like the file, how do you handle each month thereafter? anyway to do cumulative budget?
Thank you!!! I needed this so badly. You make it super simple. I especially love the spreadsheet. I have my own spreadsheet with recorded info from the last 7 months, so it should be easy to pull in that info. 😁👍🏼 I can’t wait to get started. Edit: getting started and wondering where you would categorize "personal care" such as hair, nails, etc?
You can edit the categories.
Now I have more knowledge about personal finance, thanks to your channel, I just subscribed.Big ups to everyone working effortlessly trying to earn a living while building wealth in this recession. I’m 45 and my husband is 51, we are both retired, no debts. We are currently living a frugal and financially savvy lifestyle and generating passive income even during this recessionary period. Our commitment to saving and investing in the financial market has enabled us to maintain this lifestyle and continue earning monthly passively through investment.Traveling is now on our horizon, thanks to our financial choices*
Congratulations on your early retirement, Interesting indeed! Currently, I am in dire need of investment advice or tips. Earlier this year, I hesitated and failed to take any action until now. However, I am determined to try something new, as I am very receptive to various investment ideas. I want to be retired in my forties or fifties, I really wish I can achieve what you and your partner has achieved. I believe and it will surely happen.
Thank you soo much for your videos and for sharing this budget sheet. It’s soo helpful and simple.
Can anyone help me with set 4: analyzing your expenses ?
I’m not understanding how he found how much to save on the budget breakdown on fixed and variable expenses.
Thanks for the free spreadsheet Austin!!!
I'm having issues with the free spreadsheet though. There is no chart??
Monthly income (minus) monthly expenses = monthly profit , x6 months expenses = emergency fund (put it aside). Not complicated
Hi Austin can u share a example budget sheet for learning thanks
Hi Austin, Lovely informative video. I want you to make a video about where can we invest our money for a short time. As I am nearly 60 years old, so according to my age, if people want o invest and be able to enjoy or use their money, if they need it, where can we invest and grow their money. If there are some kind of investment strategies out there?
Thanks
Thank you for your advice! happy Holidays!
What a great spreadsheet! Is it intended to get someone started on a budget, or is there a way we can use it month to month?