Budgeting is hard, whether you have a little bit of money or a lot. Do you feel like you’re always just making ends meet? Are you struggling to save for a big purchase or to build an emergency fund? The 52-week budget is a different way of looking at your family’s income and expenses that might help you organize your budget once and for all.
Note: I’m not a financial expert, just a mom on a budget sharing my experiences. Always consult the pros.
When my husband and I married, we were in college and on a ramen budget. Over a decade, we finished school, worked hard and increased our income significantly. It wasn’t easy. We still have student loan debt, but I can pay the bills, buy groceries and still have money for when my child comes home with ripped jeans.
I’m not a budgeting expert by any means, but by using the 52-week budget, I’ve been able to plan ahead smartly.
Looking at money differently
For several years, I’ve used an Excel spreadsheet to track our expenses. Every Friday, I pay the bills and gather my receipts. I type in every dollar that we have spent, organized into a few categories.
Read how the 50/30/20 budget works for us to see what my spreadsheet looks like and to download a template you can use.
In doing that, I noticed patterns.
- Our electric bill goes up in the summer and down in the winter. Our gas bill does the opposite.
- Cars need inspection and registration at the same time each year.
- And little things like running to Walmart for a forgotten ingredient {and then picking up two more items on the trip} really adds up.
I also use the same method to track my blog income and expenses. I do the same for my husband’s side craft business.
The big picture
To run a successful business – or even just a side hustle – you have to look at the big picture. You have to look at the whole year and figure out when your big expenses {like craft show fees or website hosting renewal} will be.
Spend less now because you know you need to spend more later. Be thrifty in July because you’ll need to buy school supplies in August.
By running our personal budget like a business budget, I’m able to think not just about this month, but next month too. And beyond. That’s the idea behind the 52-week budget.
How not to panic
Now it’s easy to look at the whole year and freak out a little. I mean, if I multiply what we’re paying for internet service times 12 months… yikes. But remember this is for the whole year.
Start with your main expenses. I don’t have a category for every expense. There is one line for “everything else” on my spreadsheet where those quick stops at Walmart go. It’s really a catchall for anything that doesn’t fit neatly in one of the other categories. If you’re trying the 50/30/20 method, it goes under “lifestyle.”
Too many categories can make it a bit hard to keep track of everything. Especially if, like me, you drop by Walmart to pick up groceries, light bulbs and a pair of leggings. Do not try to take a receipt and divide it into categories. It will make you crazy. Pick the main category that most of the items you purchased go in.
Actionable steps
Okay, so you might remember that I said I’ve been working on my budget spreadsheet for years. This is not a change that you will make overnight. It takes time to set up and maintain, although it does get easier once you have a routine.
- Start by making a list of expenses you have every month: your mortgage/rent, utilities, etc. and how much they cost over a year. If you haven’t been keeping track, you can look back at past bills or bank statements.
- Next, write down your biggest irregular expenses and about how much you spend. Estimating is fine.
- Now calculate your yearly income {take-home pay} minus both lists of expenses. That’s the part of your budget that is flexible.
Making it work all year
Here’s the trick that will make your yearly budget work. Instead of dividing that flexible budget by 12 months and spending it, that’s the part you need to save. Make a general list of all the expenses throughout the year that tend to sneak up on you: birthday gifts for your child’s friends, oil changes, co-pays on a dentist visit, etc. Write down when they are and about how much you’ll probably spend.
It’s the little things that add up and make you go over budget. But if you can plan ahead for them, they won’t be as big of a deal when they happen.
You don’t necessarily need to move that money to a savings account {unless you’ll spend it if it sits in checking}. Mentally, though, remember that you don’t have “extra” money – you’re spending that on something later.
Tools to help
In case you love spreadsheets as much as I do, I made one for the 52-week budget. It follows the same category system as the 50/30/20 budget because I use them both together.
You can change out any of the categories or add and remove columns.
Click HERE to get the 52-week budget Excel spreadsheet.
Have a budgeting question? Leave a comment or send me an email and I’ll do my best to help.
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