A budget is an item wise summary of the expected income and expenses for a specific period of time. It is a helpful tool that assists people to estimate the amount they have on hand and what they will require for other specific activities. It also allows them to prioritize these spending patterns. Budget templates are developed using software like Microsoft excel and are principally spreadsheets that serve many purposes. The spreadsheet allows you to discriminate the amount that is coming into you and the amount of funds that is getting out. Because they are made on excel sheets they are very organized, systematic and easy to comprehend. It is one of the best tools to prioritize the amount of money you spend and how you should manage the finances that you are earning or getting.
Importance of Budgeting
Budgeting is a planning and organizing tool that is used by both companies and individuals. It is a very helpful and effective financial planning medium. It can also be used as a monitoring tool. The budgets help people in the identification of unnecessary expenses and expenditures and avoid over the spending of their hard-earned money.
One common example of a budget is the personal monthly budget. The personal monthly budget template has been used to list down your expected expenses for a specific month and also the income coming in for that specific month. It also helps to analyze the previous month’s financial performance and make corrective action where needed.
MS Excel Personal Monthly Budget Template: Download