The Ultimate Monthly Budget Review Checklist

The secret to smart spending habits, stress-free finances, and money management is simple.

Are you ready for this big secret? 🥁

The secret is this: complete a monthly budget review.

Now, I know what you’re thinking.

You really don’t need another task to add to your ever-growing monthly to do list.

But, hear me out.

A monthly budget review is quick. It’s simple. It’s free and easy to do.

Best of all, a budget review will absolutely lead you down the path of financial success.

Unlock your money management superpowers and take control of your financial future.

Get ready to level up your money game!

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What is a Monthly Budget Review?

Great question!

A monthly budget review is a quick list of tasks to complete at the end of each month that allows you to understand your spending habits, analyze your income, and check in with your financial goals.

This review is also the perfect time to take a step back, reflect on your financial journey, and determine how you can improve in the following month.

But, most importantly, a monthly budget review allows you to manage your finances by telling your money what to do.

Monthly Budget Freebie

The monthly budget review is a simple process. But, if you want to make it even easier to complete, you can snag this handy monthly budget freebie to help kickstart your money management journey.

Create a Monthly Budget

If you have not created a monthly budget, stop right now and hop over to this post to do so.

You need to set up a monthly budget before you can complete a full monthly budget review.

Realted: An Ultimate Guide to Creating a Budget

The Ultimate Monthly Budget Routine

Alrighty! Now that you understand what a monthly budget routine is, why it is important, and have your monthly budget prepared, let’s dive into the goods.

1. Tally Monthly Expenses

Start by reviewing your spending for the entire month.

Sort each expense into your budget categories (groceries, transportation, utilities, etc.) and determine each category sum.

Then, for each category, subtract your total spent from your budgeted value. Flag any categories where you overspent.

Lastly, calculate your overall spending for the entire month.

Related: A Complete Guide to Frugal Living

2. Evaluate Monthly Income

Next, take a look at your income for the month.

This includes everything net-positive in your account such as paychecks, money transfers, bank interest, etc.

Add all your income together to determine your monthly income.

Related: 21 Legit Ways to Make Extra Money

3. Check in with Monthly Budget

Plug your category expenses, total spending, and total income into your monthly budget spreadsheet or freebie.

Next, determine your total for the month:

Total Income – Total Spending = Monthly Total

Related: An Ultimate Guide to Creating and Sticking to a Budget

4. Check in with Sinking Funds

Next, check in with your sinking funds by 1. deducting expenses and 2. adding any monthly contributions to your sinking fund tracker.

Sinking Fund Crash Course

Unfamiliar with a sinking fund? No worries, let’s take a quick look.

A sinking fund is basically a mini savings account designated for a specific category of expenses.

Think if it as a folder within your savings account.

Most people use a sinking fund for expenses that happen irregularly throughout the year such as quarterly bills, unexpected health expenses, car repairs, birthdays, and travel.

There are several ways to manage a sinking fund.

Personally, I prefer to keep all my sinking fund money in a single savings account and use a spreadsheet to keep track of each sinking fund individually.

Then, each month, I contribute a set amount to each sinking fund and add a “Sinking Fund” category to my monthly budget.

Then, when I check into the sinking fund each month, I identify any expenses that occurred and subtract that amount from my sinking fund category in my spreadsheet.

Once you get used to the idea, this process is simple and a great way to account for random expenses or non-monthly bills.

Make reaching your financial goals easier with these awesome and easy to use worksheets!

5. Contribute to Savings, Debt, and Other Goals

If you have a net-positive monthly total, contribute this money to your current financial goal.

This might include savings, debt, or any other financial achievement.

6. Evaluate and Review the Month

After you’ve checked in with your budget and goals, it’s time to review your monthly financial journey.

This step is essential in helping you improve your spending habits and reach your financial goals.

Take some time to answer the following questions:

Budget Categories: Review your budget categories. In what areas did you overspend? Why did this happen? In what areas did you underspend? How can you adjust your budget categories for next month to be more realistic? Make those adjustments now.
Net Total: What is my net total for the month (income minus expenses)? How do I feel about this value? How can I improve this value next month, such as starting a side hustle or saving money on everyday expenses? Brainstorm one idea and add it to your to do list now.
Sinking Funds: What is left in each sinking fund? Is it enough for next month? Do I need to make any adjustments? Do that now.
Debt Plan: Did I make any debt contributions this month? Do I have enough saved to make the next debt payment? Do I want to make any extra debt contribution? Am I on track to meet my debt goals? Add any action items to your to do list now.
Savings Plan: How much have I contributed to my savings this month? How do I feel about this value? How can I improve it next month? Am I on track with my savings goals? Do I need to make any adjustments? Add any action items to your to do list now.
Financial Goals: Check in with any other financial goals. Am I on track to meet these financial goals? How can I improve or adjust? Add any action items to your to do list now.

Related: 57 Insane Money Saving Hacks to Skyrocket Your Savings

7. Quarterly and Yearly Check-In

One last step!

Quarterly Task: If you find yourself at the end of a quarter (end of March, June, September, or December), consider taking a few minutes to complete some tax prep. Collect receipts and make any notes you might find useful when tax season rolls around. This will save you time and hassle later on.

Yearly Task: If it’s the end of the year, I suggest repeating the questions from your monthly review but applying them for the year. For example, tally your year’s expenses and income and determine your net yearly value. How did you do? You might also consider creating a new budget for the upcoming year and take some time to predict any upcoming expenses.

There you have it, my ultimate monthly budget review process. I hope you found this helpful and have been able to create a plan to conquer your own financial goals. Happy budgeting!