Personal Budget Calculator (2024)
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Find your future bank.
Did you know that a recent survey conducted by the Financial Consumer Agency of Canada in 2020, found that only 47% of Canadians have a budget? The same survey also found that 31% of Canadians reported that they have difficulty following the budget they have set for themselves.
With nearly half the country living paycheck to paycheck, can you afford to not be in charge of your finances?
Our Canada budget calculator can help you by laying out how much your expenses are compared to your income and help you see where you might be able to save some money.
Why is personal budgeting important?
Personal budgeting allows you to have an overview of the income and expenses that you deal with monthly. Taking control of your budget will allow you to understand where your money is going and direct how you want your situation to work in the future. Let's take a look at some of the key advantages.
| Advantage | How it helps |
|---|---|
| Helps Manage Finances | It allows them to track income, expenses, and savings and make informed decisions about how to allocate their money. |
| Promotes Financial Discipline | Creating and following a personal budget requires discipline and self-control. By establishing spending limits and sticking to them, individuals can avoid overspending and unnecessary debt. |
| Reduces Financial Stress | A personal budget can help reduce financial stress by providing a clear picture of an individual's financial situation. Knowing where money is going and having a plan in place can help individuals feel more in control of their finances and less anxious about money. |
| Helps Achieve Financial Goals | Whether your goal is saving for retirement, paying off debt or buying a home, by creating a plan and tracking progress, individuals can take steps toward achieving their goals. |
| Provides a Foundation for Financial Planning | By establishing a budget, individuals can better understand their current financial situation and set money aside for large purchases and investments. |
Personal budgeting is an essential tool for managing finances effectively, reducing stress, and achieving financial goals. It provides a roadmap for financial planning and helps individuals make informed decisions about their money.
Budgeting also allows you to set aside money that you want to save and invest for the future! A good online brokerage is a good way to get started investing.
Compare the Best Online Brokers in Canada
How much money should you save each month?
The amount of money that an individual should aim to save each month depends on their personal financial situation and goals. However, a general rule of thumb is to save at least 20% of your monthly income.
If you're just starting to save, it's okay to start small and gradually increase the amount you save each month as you become more comfortable with budgeting and saving. The most important thing is to establish a savings habit and consistently contribute to your savings. Here are some factors to consider when determining how much to save each month:
| Factor | Why it is important |
|---|---|
| Monthly Income | The amount you save each month will depend on how much you earn. As a general rule, the higher your income, the more you should be putting aside. |
| Financial Goals | Your savings goals will also play a role in how much you aim to save each month. If you have a specific financial goal, such as saving for a down payment on a home or building an emergency fund, you may need to save more each month to reach that target. |
| Expenses | Your monthly expenses will also influence how much you can save each month. If you have a lot of expenses, you may need to cut back on some recreational spending to increase your savings. |
| Debt | If you have debt, such as credit card debt or student loans, you may need to allocate a portion of your income toward paying off that debt. Once your debt is paid off, you can redirect those funds toward savings. |
Good to know
The amount you should aim to save each month depends on your personal financial situation and goals. However, a good starting point is to aim to save at least 20% of your monthly income.
How can you manage your personal budgeting better?
Managing personal finances can seem overwhelming and one-third of Canadians say they have difficulty sticking to a budget even once they have planned it out. So how can you make sure that you make a plan and stick to it?
In the table below we have laid out several steps you can take to improve your budgeting skills:
| Tips | How they help |
|---|---|
| Track your spending | Start by tracking all of your expenses for a month or two. You can use a spreadsheet, a budgeting app, or even a pen and paper. This will give you a clear picture of where your money is going and where you can cut back |
| Set financial goals | Determine what you want to achieve financially, whether it's paying off debt, saving for a down payment on a house, or building an emergency fund. Setting specific goals will help you stay motivated and focused. |
| Create a budget | Based on your spending habits and financial goals, create a realistic budget that outlines how much you can afford to spend on various expenses each month |
| Prioritize your expenses | Make a list of your fixed expenses (such as rent, utilities, and car payments) and your variable expenses (such as groceries, entertainment, and clothing). Prioritize your expenses based on what's most important to you. |
| Reduce expenses | Look for areas where you can cut back on expenses, such as eating out less or cancelling subscription services you don't use. Every little bit helps! |
| Use cash | Consider using cash instead of credit cards for discretionary expenses. This can help you stick to your budget and avoid overspending. |
| Review your budget regularly | Review your budget on a regular basis (such as monthly or quarterly) to make sure you're on track to meet your financial goals. Adjust your budget as necessary to reflect changes in your income or expenses. |
What tools can help you budget better?
Once upon a time the only way to keep track of your expenses was to carefully record them all with pen and paper. Luckily, there are now a huge variety of tools, apps and life hacks to help us get on top of our finances, from monthly budget calculators to online banking.
In the table below, we have laid out some of the most popular and useful tips for getting your budget under control.
| Methods | How they work |
|---|---|
| Free budget calculators | Online budget calculators, like the one at the top of this page, provide an easy way to measure your incomings against your outgoings and see if there is any shortfall. |
| Spreadsheets | Spreadsheets like Microsoft Excel or Google Sheets are a simple and effective way to track your income and expenses. You can create a budget template, categorize your expenses, and track your spending over time. |
| Budgeting apps | There are many budgeting apps available that can help you manage your money. These apps allow you to track your expenses, set financial goals, and get alerts when you're overspending. |
| Envelope system | The envelope system is a cash-based budgeting system where you allocate a set amount of cash for each spending category, such as groceries or entertainment. You then place the cash in designated envelopes and only spend what's in each envelope. |
| Online banking | Many banks offer online banking services that allow you to view your account balances, track your spending, and set up alerts for when you reach a certain spending threshold. |
How do you budget with Microsoft Excel or Google Sheets?
Budgeting with Microsoft Excel or Google Sheets is a simple and effective way to track your income and expenses. Here are the steps to create a basic budget template:
- Open a new spreadsheet in Microsoft Excel or Google Sheets.
- Create a table with columns for the following information: date, description, category, income, and expenses.
- Under the "income" column, list all of your sources of income, such as your salary or freelance work.
- Under the "expenses" column, list all of your monthly expenses, such as rent/mortgage, utilities, food, transportation, entertainment, and any other bills you have to pay.
- Assign each expense a category, such as "housing," "utilities," "food," "transportation," and "entertainment."
- Input the amounts you expect to spend in each category each month.
- Create a formula that subtracts your expenses from your income to calculate your total income after expenses.
- Set up conditional formatting to highlight any categories where you overspend.
- Review and adjust your budget on a regular basis to ensure it reflects your current income and expenses.
Good to know
Using Excel or Google Sheets for budgeting allows you to easily track your spending, make adjustments as needed, and analyze your financial situation. There are also many budgeting templates available online that you can customize to fit your needs.
How to use the personal finance calculator?
Hellosafe's Canadian budget calculator is a tool that can help you create a monthly budget based on your income and expenses. Here's how to use it:
- Input your monthly income. This can include your salary, any side hustles, or any other income you receive.
- Input your monthly expenses. This can include rent/mortgage, utilities, groceries, transportation, entertainment, and any other bills or expenses you have each month. Be sure to include all your expenses to get an accurate picture of your finances.
- The calculator will then display your monthly income, monthly expenses, and the difference between the two.
- You can then adjust your expenses to see how different changes will impact your budget. For example, you could decrease your entertainment expenses or increase your income to see how it affects your budget.
- Once you have entered all of your information and made any adjustments, you can save or print your budget.
Hellosafe's monthly expenses calculator is a helpful tool that can simplify the process of creating a monthly budget. Once you have an understanding of your monthly income and expenses then talking to a financial advisor can take your budgeting to the next level.
Start working with a financial advisor today
