Content

• Steps
• Method 1 of 1: Creating Your Household Budget
• Tips
• What do you need

Creating a budget for a household will come with a "diagram" showing how the money earned by family members is spent.

Steps

Method 1 of 1: Creating Your Household Budget

1. 1 Start with the biggest one. Are there monthly or yearly payments? As an example - payments for a car, payments for rent or mortgage, utilities (water, electricity, etc.) and insurance (medical, dental, etc.). Try to round each of them to the nearest $ 300 to get an idea of ​​how much you are spending on each of these payments.
2. 2 Start by calculating your usual costs. How much do you spend on gas every week? What is the average grocery check, or how many times a week do you eat in restaurants instead of cooking at home? Think about the things you want, not the things you want. Spend as usual, but keep the receipt each time or write down each time you open your wallet or pull out your wallet. At the end of the day, put it all together on paper or on your computer or phone. Be sure to write down exactly what you spent on it and do not use general notes such as "food" or "transportation".
3. 3 Create a section for your earnings. Write down all income, even tips or “thanks” (money you bring home before taxes), money you find on the street, and your salary (or its monthly equivalent if you get paid more than once a month).
4. 4 Make a "Monthly Income" section. This is the money that goes home after taxes, if any.This is the amount on your check, not the earnings for the period.
5. 5 Write down the numbers of your monthly income and total expenses. Once you've gathered your monthly spending information, you can categorize them as necessities, smart spending, and excesses.
   • Excess costs are those big expenses that you can avoid or that do not provide you with a level of satisfaction comparable to their cost. This can be both expensive nightlife and buying lunch and coffee to go. Assuming you drop in for take-out coffee at your local coffee shop every time you commute to work, be prepared to accept that this morning ritual costs you roughly RUB 25,000 a year. And if you buy lunch 5 times a week, then you spend about 70,000 rubles annually just for lunch. And that's without taking into account the money spent on tea and coffee during the day!
   • Reasonable spending is those expenses that are not dangerous for the budget, from which the level of pleasure is much higher than their cost. For some, it's a once-a-month, limited-spending party, or buying a movie disc once a week.
   • If your total expenses are higher than your income, you should consider lowering your expenses or consider ways to reduce your bills.
   • If your monthly income is higher than your expenses, set aside your savings. This money can be used for a second mortgage, college tuition, or anything else. Or you can save for something smaller - a trip to the resort.
6. 6 Work off your weekly and yearly cash reserves. A week's supply of cash is needed so that if you spent a little in a week, you would not have to suck resources from your credit card and your pocket will not suffer. By including a year's supply in your budget, you will avoid ruining it in the event of unforeseen medical expenses, spending on car maintenance or huge repair costs. It's great if at the end of the year you find that your yearly cash supply remains intact! Now you have money to pour into your savings or retirement plan.
7. 7 Calculate how much your short, medium and long term plans will cost you. Do you need to change anything in the house this year? Do you need a new pair of shoes this year? Do you want to buy a car? Plan these expenses in advance and then you will not need to touch your savings. Another important thing to remember is that all these things should be bought only after you have saved up for them. Ask yourself - do you really need it right now?
8. 8 Create a new budget that includes your supplies and goals. After that, try to spend only on the necessary things. Avoid spending on excess and save smart spending for the days when you ripped out most of your hair while trying to create a new budget. As a result, you will need them less and less, and the fact that you have already taken them into account will mean more savings.
9. 9 Hang the budget somewhere in a place that all family members can view and follow. If a teen has a job, they can create their own budget. When teens go to the movies, they can budget for it.

Tips

• Use this method to create a budget for kids with pocket money, it will help a married couple who has budget problems, tell you how to organize a single person.
• Don't keep all your money in one place - in one bank account. If you share your weekly cash limits, accounts, inventory, short and medium term savings, chances are you won't have a problem. For example, withdraw your weekly cash limit and weekly supply right away, and then leave the supply and credit card at home. If at the end of the week it turns out that you have not touched the stock, next time remove the weekly limit minus what is left of the stock. You can add extra stock to your savings.

What do you need

• Paper, calculator, pen
• Computer tables
• Income papers (payroll check stubs, tax refund statements, etc.)