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Key lines of the below Example are linked to explanations (located below the budget table).  Guidelines to start or improve your own budget can be found on my Budget Basics page.

Line 01: INCOME, GROSS, Monthly Average
Often more than one line will be needed here.  For example: if there's more than one person in the household contributing their income, or some member(s) has multiple incomes (such as: pension, social security and a part-time job).  If so, this line would become: INCOME, TOTAL GROSS, Monthly Average; and be preceded by however many lines as necessary to itemize the individual sources of income.
Hint:  when estimating your monthly gross income, use the smallest certain figure (be conservative); any actual income above this amount will then become part of your cushion.

Line 03: Taxes (Federal, State, etc.)
Include all types of taxes deducted from your paycheck: Social Security, Medicare, Federal and State income, SDI (state disability), etc..  If it seems like these are increasing regularly, you are (unfortunately) not mistaken.

Line 04: Savings Plan (401k, 403b, credit union)
If you have money regularly deducted for a company credit union account, it should be on a separate line from any tax deferred company savings plan such as a 401k or 403b.  Remember, a 401k type account is one of the best deals available to the general public.

Line 05: Other (medical, dental, etc.)
Some companies offer their medical/dental benefits in a cafeteria plan, where you are allowed to choose from a variety of options.  Usually the company pays you some allotment for benefits (added to your income on line 1) with which you purchase the benefits you want (deducted on this line).

Line 07: INCOME, NET
The difference between lines 1 and 6.

Line 08: Expenses
Hint: when estimating expenses favor the high side (the opposite of what you did for Income, above).   In other words, slightly overestimating your expenses (along with underestimating your income) will build in additional savings.  This additional savings will not appear in your budget, but, in your bank account (oh happy day!).

Line 09: Personal Savings (pay yourselves first)
This should be first on your priority list - except for paying off credit card balances.  No matter how modest your income is, you should always save for the future.  An easy way to fulfill this important task is to set up an automatic monthly (pre-authorized) transfer.  Most Banks, Mutual Funds, and Brokers will regularly transfer cash from your Bank Account (or Money Market Account) into any of a number of accounts they handle.  Saving 10% of your gross income (include IRA or 401k contributions) is a good minimum goal.

Line 10: Housing (rent or mortgage, etc.)
Include any home related insurance (homeowners or renters), taxes (property), and interest on loans.  You can also include here expenses for home maintenance such as: paint, cleaning, and repair; along with utilities.  Alternatively, you could create separate categories (as I have) for Housing, Utilities, and Home Maintenance.

Line 11: Utilities
This one category may take some time to compile.  If possible use one year's worth of receipts to average your monthly bills.  Don't include items such as cable TV here, as that belongs in the Entertainment category.

Line 13: Transportation (purchase, lease, or public)
This category contains: vehicle payments, rideshare fees, public transportation expenses, etc..  Any vehicle maintenance expenses: gas, oil, license, insurance, etc.; can be listed on a separate line for tracking.

Line 17: Books, Periodicals, Online Services
This could be considered a sub category of Entertainment, however, I've added it here because many books, periodicals, and online services may be for business or investment purposes (tax deductible).

Line 18: Entertainment (TV, movies, CD's, vacation)
No one expects you to do entirely without entertainment, but, this may be one area to cut costs.  Remember, cutting costs does not necessarily mean reducing the amount of your entertainment.

Line 19: Debt Repayment (credit card, school, etc.)
Repayment of these is a top priority, especially, since the interest is no longer tax deductible.

Line 20: Other Expenses
Some of the other expense categories you may have are: tithing, education, child care, gifts, job related, home improvement, medical and dental.

Line 22: INCOME, NET minus Expenses
The difference between lines 7 and 21.  This line should not be negative; also, it shouldn't be too large.  If it is large you have the happy task of adjusting your expenses (especially personal savings) upward.  Do not consider this remainder "money to burn" - that would be a regular expense item within the Entertainment category.  Remember, this amount is your "cushion" for unforeseen expenses etc..