You might prefer something more visual when you are putting together a budget.
Even though spreadsheets or apps on your smartphone are often used to create budgets, they may not be the best fit for you.
Spreadsheets are tedious and boring, making them easy to forget in the day-to-day. You may feel the same way about technology or you might not like the idea that all of your financial information is pulled into an application.
What can you do in order to budget and organize your finances? You could also create a budget binder. What is it, and how do you create one that will work for you?
Table of Contents
What is a Budget Binder?
What should you include in a budget binder?
How to create a DIY budget binder
Budget Binder Printables for Sale
What is a Budget Binder?
When using a budgeting method that is based on zero, a budget binder can be incredibly useful for keeping track of your finances. You can use it to track your financial goals, expenditures, and income. You can also store your cash wallets as well as house documentation and tracking sheets.
When you receive a paycheck, pay bills, or make any other type of purchase that requires cash, you’ll use your budget binder on a regular basis (at least one time per month but more likely once per week).
It will be in addition to the emergency fund, savings account and monthly budget calendar to help you keep your spending in check. The budget binder will be used to track all of your financial plans, no matter how big or small. This includes paying off debts, building an emergency fund and more.
What should you include in a budget binder?
You need to decide what you will track before you start building your budget binder. You can track many budget categories, but these are the most important.
Setting and tracking goals
What are your financial plans for the next year? This section will help you set your long-term goals and aspirations.
It is a great way to give your budgeting a context and remind yourself of why you are doing what you do when you’re feeling low on motivation.
You should have a system in place for tracking your goals. You could use a checklist or a pyramid you can color as the goals are achieved.
Some examples of financial goals are:
Student loans and credit cards can be paid off
Budget 3-6 months of expenses in an emergency fund
Savings towards a down payment on a home
Income tracking
To create a budget you will need to know your income. Include all income, whether it’s from your job, side hustles, dividends or other extras.
You can track your income using a simple worksheet that you can print. It includes columns for each income source and the pre- and posttax amounts. If an excel spreadsheet doesn’t suit you, there are a variety of online budgeting templates.
You can also create your own page within the binder that you find most useful. You can track your income in your budget any way you like.
The following sources of income can be tracked:
Salary
Side hustle income
Interest on Savings Accounts
Tax refunds
Sales income / odd jobs
Tracking expenses
After you have calculated your monthly income, it is important to understand what leaves your bank account. Your expenses include any personal or essential bills you pay. It is important to keep expenses under control.
The following are examples of expense categories:
Housing (rental or mortgage payments).
Utility Bills
Spending on groceries and restaurants
Transport
Contributions to pensions and insurance
Additional expenses related to childcare, luxury items, etc.
Tracking debt repayment
Many of us need help in paying off debt, whether we’re drowning in student loans or behind on our credit card payments. A tracking sheet is an excellent way to keep track of your goals and visualize your progress.
You can find many fun templates online. You can create different sheets for debt or use an Excel spreadsheet you create and then print out to put in your binder.
If you want to get rid of debt quickly, it is best to spread your income over multiple debt streams.
Net Worth Tracker
Net worth is the overall balance after subtracting your debts, savings and investments. Your liquid net worth can be calculated in several different ways. In their 20s, people may have negative net worth because they have less years of work and have less time to pay back student loans.
As you get older, you should save up around one year’s income. The net worth will not be updated every month but every six months to a year.
Plan your savings
You should also plan for long-term saving in addition to your monthly income and daily expenses. They can be used to help you achieve your financial goals and change your lifestyle. You may wish to save money for your children’s education, a vacation, or even a large purchase like a vehicle.
Your budget binder can be tailored to meet your individual financial needs. Include medical expenses, credit card details, donations or charity, etc.
Don’t limit yourself to just the categories above when creating your budget binder. Make it powerful and unique so that you can easily conquer your finances.
How to create a DIY budget binder
It is easy to create a DIY binder for your budget. You don’t need a lot of materials to get started. Don’t worry if your creativity or craftiness is lacking. Your binder should be used to organize your budget and keep checklists to guide you in the right financial direction.
You’ll find all the materials you need to make your own budget binder here.
Three-ring binder
Three-ring binders will keep your documents securely attached to the folder, and allow you to organize them as you wish. Personalize your binder with artwork or other finishing touches. Amazon and eBay are both great places to look. You can also visit local office supply stores to find the items you need.
Three-hole punch
The binder should be a perfect fit and hold your paper in place. You can adjust the three-hole punch so that it is at the same distance from the binders of your folder. These can also be purchased on Amazon, eBay or at local office supply shops.
Colored markers or pens
It’s fun to add color, whether you use thicker or thinner Sharpie markers. It’s easy to keep your binder organized and understandable if you color code each category.
Whiteout & paper clip
You can’t avoid mistakes. But you don’t have to let them ruin your progress and months of budget tracking. You can find whiteout at any drugstore, and paper clips will keep your documents together in a binder if you want to group receipts or papers together.
Dividers
This is another feature that makes it easier to navigate your budget binder. You’ll be able to find items quickly when you use dividers. Spending time each month tracking your budget is enough. Don’t waste any more time trying to find the right place.
Stickers
Stickers are not just for children! Stickers can be used to label pages in a budget binder or calendars, mark the due dates of bills, and fill in spaces as you pay down debt. These stickers are a great way to keep track of your budget and help you maintain a consistent approach to your money management.
Labels
Labels are needed to identify each page and document, and for spreadsheets or tracking sheets that you choose to include. Labeling each section in your budget binder can be useful for organization, but also to help you break down your tracking page by page.
Envelopes
Cash envelopes help you keep your money organized and separate into the categories that you intend. To avoid confusion, it’s important to break your budget down into smaller envelopes. You can either make them yourself, purchase from sites such as Etsy or use templates available online.
Budget Binder Printables for Sale
You don’t have to be a super creative or artsy person to create a budget binder. However, you might find the idea of creating one unappealing. If that is the case, there are other options to make budgeting easier.
Etsy
Etsy has a wide selection of budget binders, including accessories. You can find all the accessories you need, including cash envelopes, printable tracking pages, and labels.
You can get your name on the binder or a wallpaper with your dream destination or favorite place. Etsy has something for everyone.
Amazon
Amazon is another huge marketplace that you can choose if your goal is to start selling right away and need a quick turnaround. Amazon offers cheap prices and Prime delivery, which will deliver your order the next day. You won’t be able to customize your item as much when you build it yourself.
Budget bloggers
Budget bloggers are abound and can offer free or paid budget printables. You’ll need to subscribe to their mailing list to get the freebie, or you can pay $5 for each tracking sheet. You may be able to get bundles of spreadsheets if you require multiples.
If you don’t want to create your own budget binder, you can find examples online.
