You made it this far, so thank you! 

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Now, before you start using this budgeting tool please note: it is entirely analog. 

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You may all of a sudden have been filled with anger directed at me, however, please bear with me as I explain why.

 

While my reasoning is different from that of the monthly budget being analog, I still stand by it. As you will see, if you use the tool, an annual budget will make you question everything (no I'm not entirely joking). So, it being analog allows you to mess with the numbers and see what you get.

 

You may be asking why messing with the numbers is necessary. Well, here is why: when I took my first stab at my annual budget (that I had been told multiple times was a good idea before I listened) I was wrong in my calculations by 12,000 dollars. And no, I unfortunately do not mean that I had an extra 12,000 dollars at the end of the year.

 

While this made me want to scream and cry at the same time, once I started messing with the numbers and seeing which expenses I was willing to adjust (gym memberships, dining out, clothing, etc.) I was able to get a totally different calculation that was thankfully not anywhere near -12,000.

 

I should note that this annual template being analog is not about preventing any hiding behind numbers. Rather, it is because it is really hard to think about how expensive a monthly charge is to your life until you have to multiply it by 12. Having to do this by hand will make you think about what expenses are worth to you and if you can truly afford them. Obviously, it is a bummer to realize you cannot necessarily afford something you would have hoped you could, but disappointment with an excel sheet is much better than over drafting your account. 

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Now, the goal of this budget is to help you get an idea of what you are spending annually so that you can calculate what you will have at the end. Now just as I said there will always be an unexpected monthly expense, the same is truly for your annual expenses. Things like necessary gifts, unplanned trips, unforeseen medical needs, etc. will happen. So, just as I said you should do yourself a favor and factor the monthly unexpected expense in the budget, you should subtract some from what you think you will have saved by the year's end. The reason I encourage this is to avoid looking at a number that is drastically lower than you had hoped to save and feeling crushed when in reality you have still made huge progress by saving anything. 

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All that said, here is a quick explanation of how I designed the template and why. 

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p.s. if you hate explanations and would rather just jump in, the link is at the top (yes, I am one those too -- but I do always have to go back after failing and read the instructions so pick your poison and this is here when you want to read it!)

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