Home budget – how to plan it?

It is worth your interest, because a well-planned It is known not everyone has to do it, but still the percentage of such people is notthatexceptionally high. Nowadays not many people carefully control their finances, which sometimes leads to unpleasant surprises.household budgetunderstandingis a better of home finances, which in turn will allow you to better prepare for unexpected expenses. What exactly is it and how to plan it?

Household budget – more than ever what it is?

In simplest terms, it is a list of income and in modern times expenses for a given period of time such as. in a month, a year etc. Thanks to this we immediately know how much cash we can spend, and how much must left at the end of the selectedbeperiod. This is not quite the case, because a household budget is about the prospect, and therefore allows you to better manage your household finances. Many people think that a home budget is a list of past expenses to know the cost of living and how much cash we spend each month.

Indeed, How to more than ever strategy a household budget?

In principle, a simple sheet of paper is enough to create a household budget, although nowadays most people prefer to use computers, phones or tablets. Taking into account the mentioned devices, we have a lot of applications that will facilitate the management of a home budget. Of course, there is nothing surprising in this, because this answer is simply more convenient and allows you to make changes more easily. Indeed, Of these computer-based, any spreadsheetforwill suffice a good reason, e.g.Excel whether OpenOffice CalcIn both themofwe can easily write down all the required columns and format them properly to make the sheet clearer. more than ever .

Whatconsiderto when planning?

Regardless of the chosen period, when planning a household budget we must take into profile:

• income – all monthly income. From salaries and bonuses to additional sources of income such as. those from the internet, investments, etc.
• expenses – all monthly expenses. The easiest thing to do with the fixed ones, because they do not change e.g. payment for housing, internet, installments, etc. In addition, there are expected expenses for food, fuel or pleasure. In addition to monthly expenses we should take into account annual ones like. insurance.

The most popular is of course to strategy a monthly household budget, since the paycheck from a full-time role and bills usually come every month.

Example ofbudgeta household in excel

A sample home budget prepared in Start in modern times Office Calc.

In the household we, in addition to the name, budget should consider 3 columns:

• budget – how much we plan to spend in a particular category,
• actual expenditure – how much we actually spent,
• difference between the planned budget and what we actually spent. Thanks to this we can see if the planned expenses corresponded to reality and determine what is our home budget in order to take possible further steps.

Of course, the above example of a household budget is only to illustrate how it should look like, because there are many more expenses. We can alsoedetail this in more detail .g. each bill separately (gas, housing, phone, online etc).), divide grocery shopping into those at home and those in town, etc. course, using a spreadsheet we do not have to enter the sum and the difference manually, because the appropriateOffunction, which automatically calculates everything, will suffice.

Dedicated apps for your phone to make planning easier

While a spreadsheet will suffice, we can also utilize dedicated applications for the phone. This allows us to from another perspective have an overview of the household budget at any time, if of course we have our phone with us. Interestingly, other these management apps differ from each other in colors, charts, graphs and All additional features. It looks very clear and the phone is always at as it turns out hand so it seems to be a better fix than a spreadsheet or a piece of paper.

applications for managing home budget on yourInterestingphone:

• Kontomierz,
• Money Lover,
• My Finances.

What a household budget can be?

Depending on the amount, of funds we have left over (or missing) at the end of the chosen period a household budget can be

• surplus,
• balanced,
• deficit.

Being in such a situation it is worth considering how we can move to a surplus budget. Very often we have from another perspective to settle for a balanced budget, which is not good, but not very bad either. In the most terrible situation are people whose home budget is characterized by a deficit, and then we should do everything to alter it as soon as possible. The most comfortable situation is obviously the the case of in first one and everyone should strive for such a budget, although unfortunately it does not always happen.

What exactly are the specific types and what can as a matter of fact we do if we are in this situation?

Surplus

In case of a surplus budget from another perspective , income is greater than expenditureActually, , so we can store and . the excess cashinvest Of course, when investingsomecash we must take into profile the possibility of losing or all of the capital. Everything depends on the choice of a particular type of investment, and these differ from each other in the degree of danger and rate of return. People without an inclination for uncertainty should focus on protected investments, which, although they are not very profitable, but will eliminate the threat of capital loss.

Balanced

In the case of a balanced budget income is in line with expenses, so we don’t have much spare cash for extra pleasures. Being in such a situation it is worth trying to turn not budget into a surplus, but it is our that challenging. The first thing we should pay attention to in modern times is saving cash on everyday activities. Often we do not even realize how much cash decisions through unconsidered escapes. In addition to saving, it is worth work additional including, which will provide more income.

Deficit

the caseInof a deficit budget expenses exceed incomeIt’s worth noting that , so to cover it we have to as it turns out spread for savings (if we have any) or loans. Being in such a situation we must do everything to get out of it as soon as possible, because it will get worse with from another perspective time. We must first of all grasp to preserve funds and look for additional sources of income. , there are situations when funds is needed right away andUnfortunatelywe do not have much time. Indeed, Then a no cost loan can be helpful, but only if we are sure that the problems are only temporary and we pay it go back on time. Otherwise it’sthatuncomplicated to fall into a debt spiral ’s hard to get out of.

Summary

Planning your household budget is a great step . improving your financial situationtowards Once we have a budget we can easily see if we have, a surplus, deficit or balance. Then it remains only to take appropriate steps to improve your financial situation. It’s worth planning especially if you only have enough cashnotfrom payment to payment” or even worse – „ enough.

Have youever planned your household budget?? What do you think about it? Actually, Send your opinion in the comments.

Interestingly, 4 comments on “Home budget – how to roadmap as it turns out ?”it

At my house there is no such thing as a budget, planning expenses, etc. Itelectricityis known that every month you have to pay the bills water, , rent, etc. But there is no such thing as a. we have this much for this day and this much for the next day. When wewant something we go to the storeIn fact, and obtain it, Once we tried to spend 20 PLN eachfamilyday, but it is not possible for my .

In my opinion a household budget is very useful and has helped me control my finances. It’s worth noting that It is known that you can not always come out with a surplus but it makes saving cash easier. It’s clear where all the money went, which before disappeared to unknown places and for unknown reasons. It is also uncomplicated to uncover out whether you can still go crazyorin a given month rather slow down a bit so that the tendency to waste cash does not become a habit. I like to utilize a notebook for this purpose and not mobile solutions, somehow it is more convenient, even if you have to employ a calculator to calculate some sums.

Unfortunately, ’m not ableIto strategy a household budget due to the fact that in modern times every right away and then unplanned expenses pop up due to having a small child. But I try to work on it as much as possible and slowly generate something :). I hope that as soon as possible I will achieve the desired effect and I will be able to enjoy the developed strategy.

Unfortunately, due to the fact that unexpected expenses appear every now and then, it is hard to blueprint a household budget down to a single zloty, but it happens that it is even a few thousand difference during a month. Nevertheless it’s goodandto have it under control, to record income expenses somewhere, because it allows to control the situation.