In today’s struggling economic climate more and more people are looking towards home budgeting as a means of both saving money and to help in planning for the future.
Home budgeting all comes down to planning. We need to know exactly how much money is coming into the household and how much money is going out.
Tools can make the whole process of household budgeting that much simpler, as they can give you something to look at. A visual aid is always helpful. One useful visual tool is a spreadsheet, such as Excel. We all seem to use Excel nowadays so why not use it for budgeting the household income. Alternatively you could even use pen and paper. As long as you write down your plan, the method doesn’t really matter.
When planning household budgeting, one key aspect is to try and pay off any debt. You should also try to pay more than the minimal payment, if at all possible. If you are in a serious amount of debt, seeking an accredited debt counsellor is a good idea, as they can help you with this aspect of your budgeting.
When planning hour household budget you obviously need to write down all of your outgoings. These will include regular monthly outgoing such as bills, groceries, taxes, dental care, clothes allowance and entertainment. In essence everything that you will spend per month. You then need to document exactly what is coming into the household per month. It is only from gaining this clear picture that you can then make adjustments and ‘cut back’ on your monthly non necessity outgoings.
Please remember though not to set your budget too tight, as an unrealistic budget will not be achievable. Be realistic and try to cut costs were you can. Perhaps limit your dining out to twice a month instead of four times, and maybe try and shop around for cheaper groceries.
One excellent piece of advice when trying to stick to your household budget is, if you can, to try and pay with cash. Withdraw the cash that you need for purchases such as groceries and gasoline and put them into envelopes for that month. This means that you will have money put aside and you will have a clearer idea of how much money is left for the remainder of the month.
Today, home budgeting is a necessity for everyone. It helps to clear debts, better manage your finances and can help you save for the future.