Make a copy of the spreadsheet so you can customize it for your finances. Use the Google Sheets app or a computer for best results. An example budget and additional instructions and notes are on the second tab.

Fill it out. Using your last three months of bank statements enter your expected monthly income sources and amounts, fixed expenses (debt payments go only in the debt section), variable expenses, and debt payments. For variable expenses, use your statements to review what categories you might need, such as groceries, and calculate an approximate total for spending in each category based on past months. Reference the example budget tab as needed.

Sinking fund and Savings. For this section, brainstorm all your annual expenses and make a list. For example, holiday spending, car maintenance, home maintenance, annual premiums, etc. Determine an amount you need total for each category and then divide by 12. For example if you need $200 for an accountant each tax season then your monthly amount that you need to set aside would be $200/12 which is approximately $16. Also add any single savings goals that you need such as for an emergency fund.

Balance it out. Get your “Left To Budget” total to $0 by adjusting your numbers. You might have to lower category amounts or eliminate subscriptions or categories. If you have extra money you might decide to pay more towards your debts to free up minimum payments or put that money towards your next investment or savings goal.

Track & Review. Now that you have your template created and balanced based on your income and expenses you are ready to go! Next, duplicate your template budget to create a new month and then track your expenses in the ledger on the right every week. The remaining category balances help guide your spending choices throughout the month.

Overspending – it happens to all of us. If you go over budget in a category the “Remaining” section will turn red. If that happens, change the “Amount” section to equal what you “Spent” to balance that category so remaining is $0. The “Left To Budget” should now be negative. Next, adjust other category “Amounts” to get “Left To Budget” back to $0.

At the end of the month, if you need to make permanent adjustments to your budget template do that before creating your next month. To start a new month, make a duplicate tab of your template budget. Enter your sinking and savings remaining balances from the previous month into the “Balance” section for each category to keep a running savings total.

Build your freedom. Use your plan to eliminate debt, grow your savings and invest in the life you want.