How do you use a budget planner?

To use a budget planner, you will need to gather information about your income and expenses, input that information into the planner, and set goals. Then you can analyze the information to see how you can reach those goals, and make a budget to plan out your spending. You should also review the information in your budget planner regularly and adjust if there are any changes to your income or spending.

A budget planner is usually a notebook that you can use to create a budget and manage your finances. It can also be a digital tool, like an online spreadsheet or a budgeting app.

How to Use a Budget Planner

1. Gather information about your income and expenses.

Figure out how much your income is after taxes. Then figure out what you spend your money on and how much you pay. You can look at past credit card and bank statements to get the information about your spending.

2. Input the information into the budget planner.

Create separate categories for your spending and designate each expense to a category. Add the amount you spend for each.

3. Set goals. 

Determine why you want to set up a budget. For example, is it to curb overspending or to save up for a new car? Whatever the reasons are, ensure you have a section on your budget planner to list out these goals.

4. Analyze the information in the budget planner.

Analyze your income and expenses to make sure they align with your goals and identify areas for improvement. If your main goal is to curb overspending, for example, look for areas where you can reduce spending. If it is to build an emergency fund, you’ll want to figure out how much of your income you can allocate to your emergency fund after factoring in your expenses.

5. Make a budget. 

Set spending limits by allocating your income among your expenses. You can look at common budget percentages, like the 50/30/20 rule, to determine how much of your income to put toward each expense.

You may have to adjust your budgeting strategy or find ways to cut down on spending if you find you don’t have enough income to cover your expenses. You will also need to track how much you actually spend on each expense moving forward and mark everything down in your budget planner.

6. Review your information regularly.

You should review the information in your budget planner weekly or monthly to make sure you are on track with your goals. This also gives you the opportunity to make adjustments when there are changes to your income, spending, or financial goals.

How to Choose a Budget Planner

You can choose to use a paper budget planner if you prefer pen and paper or you can use a digital budget planner like the ones offered in Excel or through budget apps, like WalletHub. Some budget apps allow you to sync your financial accounts to have your transactions automatically inputted into your budget, saving you time versus doing it yourself.

The choice between a paper or digital budget planner really comes down to your personal preference. In particular, do you prefer to write everything down or use a tool that can automatically link to your bank accounts? Budget apps can provide a lot of convenient features, such as automatic categorization and automatic bank sync, that can cut down on the time you spend creating a budget. On the other hand, a paper budget planner can be easier for people who are not very tech savvy.

To learn more, check out WalletHub’s guide on how to make a budget and our picks for the best budget apps.