![]() ![]() Learn how to make a household budget and use it to monitor expenses and save money. īy checking in regularly and monitoring progress, you’ll keep your budget effective and relevant to your savings goals, making it easy to see the positive difference it makes to your everyday finances. Revisit your budget regularly - every six months, for example - and compare what you thought you’d spend to what you’re actually spending. This starts by totalling up what you make each month. Your expenses will likely vary from month to month, especially if you’re a homeowner or have children. The goal of any budget is to balance your monthly expenses with your income, so you can avoid overspending. By looking at where your money is going - and where you want it to go - you can use your budget to help control your finances. This is how your budget becomes not merely an exercise, but a powerful financial management tool. If the balance is negative, you need to rethink your spending or consider ways to increase your income. Be sure to put this money aside, to cover months when expenses are higher or income is lower. Your magic number comes from subtracting your estimated monthly expenses from your household income.Ī positive balance means you will have money left over to save for future needs. (Our Budget Template provides the totals automatically.) ![]() Entertainment (restaurants, movies, shows, music, etc.)Īdd up the subtotals for each category, and the total of all expenses.Personal care (clothing, grooming products and services).Communication fees (phone, cell phone, Internet connection, television).Utilities (water, electricity, heating costs).Remember to account for occasional expenses, such as vacations (take the typical annual amount you spend on trips and divide that number by 12 to get a monthly average). If you have trouble defining your expenses, review statements and keep receipts for everything you spend, including automatic bill payments, for a few months. List all your expenses for a typical month, dividing them into major categories. Interest from a savings account or investment earningsĪdd up the total (our Budget Template tallies it automatically).Employment insurance or other government benefits.List all of the money you and your spouse or partner have coming in. Making a budget is simpler than you might think - just follow these steps, and use our household Budget Template to make it even easier. A household budget can really help you manage your money and be a better saver. ![]()
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