Budgeting can stretch a tight income and protect a large fortune. It’s one of the smartest financial moves you can make.
One type of budget that works well is the weekly budget. Keep reading to learn how to create one and why it’s useful.
- Analyze your income and expenses
- Look for ways to cut costs
- Pick a budget planner
- Maintain discipline
- Review your progress
Weekly Budgeting 101
Here are 5 simple steps to get started with your weekly budget.
1. Analyze your income and expenses
The first step is to analyze your cash flow and regular expenses to see what you’re earning and spending. Be sure to include mortgage and other bill payments, utilities, food, transportation, and entertainment. You can do this using an editable calendar template in Google Sheets or Microsoft Excel.
Learn more:
- How to Increase Your Income
2. Look for ways to cut costs
The next step is to reduce your expenses. Highlight some areas in your budget where you can cut costs. Maybe you’re spending too much money on Amazon or are paying for too many streaming services.
You could probably wipe at least $15 to $20 from your budget just by changing one small habit. That’s enough to buy a new stock every week or make a regular contribution to a savings account.
3. Pick a budget planner
There are a few different systems you can use for weekly budgeting.
Printable budget worksheet
One of the easiest methods is to create a budget in Excel that you can print and tack on your refrigerator or hang over your desk.
Similarly, there are plenty of great budget templates for tracking income and expenses. These templates can be used on a weekly or biweekly basis, making it easy to budget around your pay schedule.
Budgeting app
There are a variety of different budgeting apps on the market. For example, You Need a Budget (YNAB) combines powerful budgeting tools with education to help users stay on track with their goals.
Personal Capital is another leading budget app. It helps you manage all your financial accounts in one place.
Explore the various mobile budgeting solutions available and pick one that matches your needs.
The envelope system
Your parents and grandparents might have used the old-school envelope system. This strategy involves putting cash in envelopes labeled for specific budgetary needs.
If you budget carefully, you should have enough cash at the end of the week to either contribute toward the next round of budgeting or allocate into savings, investing, and retirement accounts.
The nice thing about this system is that if you go overboard, you can draw from another envelope. So if you burn through your food expenses before the week is over, you’ll have to pull from another category to make ends meet.
But these days, it’s rare to have that much cash on hand. If you’d rather use an app, Goodbudget and Mvelopes are new-school digital budget trackers based on the envelope system.
4. Maintain discipline
Just because money is in your bank account, that doesn’t mean you should freely spend it. Even if you have a substantial cash flow, that’s a quick way to wind up broke.
To build and maintain financial discipline, start small. Before you purchase any item, decide if you really need it or if you’re buying it out of habit or boredom.
5. Review your progress
Why do you need to review your progress? Easy: because life throws curveballs at you each day. For example, you may need to save up to replace a replace a broken-down car. On the other hand, you might get a promotion at work and make more money. Lifestyles change and budgets need to be flexible, too.
Tips for Meeting Your Financial Goals
Use a weekly budget planner
Often, people avoid using budgeting tools because they think they can keep a running tally in their heads. This may work for some, but we don’t advise it. Part of the process is making budgeting an active part of your routine.
Be realistic about weekly expenses
One of the most common mistakes that people make when budgeting is being too aggressive at first. Sometimes people cut out items like food and household products, choosing to stretch what they have to save money.
This is an easy way to become miserable. Avoid this by making a list of items you can’t possibly do without and keep them in your budget.
Watch out for lifestyle creep
Lifestyle creep occurs when a person’s expenses grow as their income increases. The secret to building and preserving wealth is to make more money each year while maintaining a similar lifestyle. This way, your savings can increase while your expenses stay the same.
Learn More:
- Top Budgeting Systems You Can’t Live Without
- Why You Need a Personal Budget
- The 6 Best Budgeting Apps for 2021
- How to Make a Budget
Frequently Asked Questions
How can I optimize my monthly budget?
Everyone has monthly bills to pay. However, with some basic budget planning, it’s a lot easier to make room for them.
Optimize your monthly budget by analyzing your expenses from top to bottom and allocating money into areas of need. Remember to cut out unnecessary expenses. Services like Trim or Rocket Money (formerly Truebill) can also automatically identify areas where you should do this.
How can I limit weekly spending?
Use a weekly budget template to control weekly spending and prevent credit card debt. Set a budget at the beginning of the week and make sure not to spend more than you’ve allotted. If you go over budget, pull from other areas before tapping into credit.
Should I use a weekly budget planner?
The short answer is yes, using a weekly budget planner is a good idea. You may also want to use a biweekly budget planner, a monthly budget planner, or an annual budgeting tool.
What is a budget spreadsheet?
Using a budgeting spreadsheet is an easy way to control expenses. A budget spreadsheet manages weekly expenses, monthly expenses, and annual expenses. A budgeting planner template typically contains several specific category and number fields.
The Bottom Line
One of the keys to getting ahead in life and becoming financially independent is forming a weekly budget plan.
If you’re serious about money management and improving your financial situation, you have to budget and use expense trackers. It’s the first step toward creating a solid foundation upon which you can build a financially free future.
