5 Steps to creating a monthly expenses sheet

5 Steps to creating a monthly expenses sheet

A monthly expense sheet is an essential tool for keeping your finances in order as well as helping you create and keep to a budget. An expenses sheet will enable you to may key decisions on future purchases and financial commitments such as whether you can afford to buy a car, move house or go on holiday.

Follow this guide for 5 simple steps to creating a monthly expenses sheet:

  1. Set some specific time aside undisturbed. You will need to think about what you spend regularly and what expenses may be coming up in the future.
  2. Gather all your financial information together. An incomplete expenses sheet is pointless so make sure you are focused and can easily access any information you will need.
  3. Divide your expenses into categories:
    • House Expenses (i.e. bills, mortgage, rent, home repairs)
    • Car / Travel Expenses (i.e Insurance, Mot, Tax, petrol, bus pass)
    • Personal Expenses (i.e phone bill, charity donations, subscriptions)
    • Family Expenses (i.e childcare, health insurance)
    • Debt repayments (i.e credit cards, loans, store cards)
    • Miscellaneous expenses (i.e entertainment, newspapers, gifts, holidays)
  4. Enter all your financial information into a spreadsheet. List anything that is not a fixed expense in miscellaneous expenses as you will be surprised what expenses you may want to reduce later. Total up each section – remember that if you are jointly paying an expense to only put your portion of the expense in your spreadsheet.
  5. Gather your total income information and deduct your expenses – the balance left is called your “disposable income” and this is what it you physically have to spend after you have deducted your committed costs.

The idea of creating an expenses sheet may seem overwhelming if you have many outgoings and don’t know where to physically start writing things down. You can access many free templates for an expenses sheet online – these will already have your sections built in and you will simply just need to fill in your specific expenses.

An expenses sheet is the first step in creating a budget to help with things like saving or clearing debt.

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