Use This Free Budget Tool To Get Your Finances In Order

Editor’s Note: This post was originally published in January 2023.

Tracking your monthly income and expenses shouldn’t require a degree in finance. In fact, it can be as simple as plugging some numbers into a spreadsheet. 

To make the process easier for you, we created this free budget tool that allows you to lay out all the numbers and examine them in one place each month. 

Our online budget tool makes it easy to create a budget. How? By using the unique “Money In, Money Out” strategy we’ve developed after helping thousands of households create successful budgets and improve their finances.

Why do you need a budget?

If your financial life is a house, your budget is the blueprint. Without a blueprint, it won’t be long before you have problems with construction.

When you have a budget in place, it allows you create a solid financial foundation for your life. You can also catch financial problems sooner and plan for your success. 

Here are just some of the many ways a budget can help you improve your financial life: 

• Determine if you’re living beyond your means.
• Stop guessing if you have enough money to cover non-necessities.
• Make a plan for where your hard-earned money will go.
• Identify ways to improve your finances long-term.
• Determine if and how you can afford upcoming expenses.

What is the Money In, Money Out strategy?

Every month, your money goes to a number of different places. With all of the different expenses you have, it can feel impossible to track everything.

But with the Money In, Money Out strategy, it’s easier to determine what’s happening with your budget. With this strategy, you boil everything down to two categories you can easily compare: 

• Money In: This includes your paycheck and any other sources of money you have coming in, such as financial gifts from family.
• Money Out: This is everything you spend your money on, from bill payments and gas to gifts and travel. 

If you have more money going out than coming in, you’ll need to make some adjustments ASAP. If you have a surplus each month, you’ll want to use the money for things that increase your financial stability, like paying off credit card debt and building your emergency savings.  

What if your expenses are higher than your income? 

If your expenses are higher than your income, there are two basic fixes: you can reduce your expenses, and/or increase your income. If you don’t make those adjustments, you could find yourself relying on things like loans and credit cards to cover your expenses.

Here are a few ways you may be able to balance your budget when your spending is higher than your income:

• Review your financial statements and look for expenses you can reduce or eliminate.
• For the biggest impact, look for ways to cut your biggest expenses first. For example, you might reduce your housing cost by renting out a room.
• Brainstorm ways you can earn more money, like by working overtime or finding a new job.
• Downsize to a smaller home or a smaller, more fuel-efficient car.
• Sell valuable items you don’t use, like jewelry or old smartphones.

You can get free budgeting help today!

Don’t wait until you’re facing a financial emergency to start focusing on your finances. By taking 30 minutes to an hour to put together your monthly budget today, you can start making decisions that help you avoid a financial crisis altogether. 

What if you can’t make your budget work? Fortunately, help is available! If you’d like to have a financial professional help you review your expenses and get your budget in order, reach out to an NFCC-certified credit counselor. Our counselors are always on standby to help you tackle your toughest financial problems.