excel spreadsheet for personal monthly budgets

Many people worry about where they spend money and whether they do it right.

The basic principle is to spread your after-tax income into three categories: 50% on needs, 30% on wants and 20% on savings. Several online calculators can help you to determine your after-tax income. It’s important to know what your income is so that you can budget accordingly and make sure that you are not overspending.

Monthly after-tax income can fluctuate depending on the amount of money an individual makes and the tax bracket they are in. This includes federal, state, and local taxes. What is a monthly after-tax income?Īfter-tax income (also known as monthly take-home pay) is the total amount of money an individual has left after all taxes have been deducted from their paycheck. Before we get to budget categories and how they are divided, let’s educate ourselves on the basics that we should understand. Financial life and decision-making become more manageable and quicker once you start following a budgeting plan. Today, it is a widely known money management rule used by many individuals in personal finance budgeting.īudgets are not as dull as they may seem, and it’s quite the opposite. The budget rule 50/30/20 was introduced in 2005 by American senator Elizabeth Warren when she published the book: “ All Your Worth: The Ultimate Lifetime Money Plan”.

Excel spreadsheet for personal monthly budgets