In challenging or encouraging economic times, understanding how to manage debt is important for your financial health.
Understanding how to manage debt is important for your financial health. And sometimes it can be overwhelming. If you’re feeling that way, remember, you’re not alone. There are many solutions that can help make debt manageable. But just as it takes time to get into debt, it can also take time to get out of it.
After downloading the Budget Worksheet, follow these steps to prepare your budget:
1. Track your income and expenses:
Over a two-month period, keep records of all your money coming in (income) and going out (expenses).
Certain expenses may be fixed each month, including rent, mortgage, groceries, insurance premiums, utilities and transport.
Other expenses may vary – such as vacations, entertainment and gifts.
2. Create your budget
Use the information you gathered above to help you complete the fields on the Budget Worksheet.
It is recommended that you prepare the budget for one month so you can directly compare your monthly expenses against your income.
You may also choose to complete your budget from a household point of view. If this is the case, be sure to consider income from all contributing household members and the total of everyone’s monthly expenses.
3. Follow your budget and keep track of your spending
When you have a good record of where your money is going, see if you can cut costs in certain areas. Or, see if you can add to your savings.
Budget worksheet
Budgets can help you recognise spending habits and identify areas where you might be able to cut back. They’re an important tool for managing your debt, and are simple to create.
