Richard Stone

Creating a household budget will help you to stay on track and make sure you have enough money each month to pay your bills and have money for anything extra that may come up. Here are some household budgeting basics to help you get started. Use the computer to create a spreadsheet that will hold all of your information. You’ll need to include your income, your monthly expenses, yearly expenses, and room for anything else that may come up. These would include vehicle repairs, school costs, going out to the movies, and other things along those lines.

1. Income

The first thing on your spreadsheet would be your income. You’ll want to include everything you may have such as paychecks, secondary income, child support, bonuses, and other forms that may only come once a year like tax refunds or gifts. Be sure to use your after tax (gross) income, and not your net income.

2. Monthly Expenses

Monthly expenses are the next thing to add to your spreadsheet. These would include credit card payments, utility payments, loan payments, and anything else that comes up every month. You’ll want to have monthly amounts and due dates so you can place these under your income where it comes in each month.

3. Yearly Expenses

Yearly expenses may be a bit of a challenge to include, but it’s a good idea to do it. This will help you avoid the stress of coming up with the money when the bill(s) comes due each year. This will mean you’ll need to create a spreadsheet for each month for the entire year so you can include these types of expenses. If you know the amount owed annually, you can divide that amount by 12 months and add to your monthly bills sheet. Keep that money separate, so when the bill(s) comes up it’s easily paid.

4. Extra’s

Extras are hard to budget for which is why you should set some money aside for these each month. Putting money into a savings account is probably the best way to manage this. Some people find it helpful to have a savings account only accessible by visiting the bank branch and speaking to a teller.

It’s nearly impossible to plan for vehicle repairs or emergencies, so a savings account will help to ease the burden when these types of things come up. Putting a small amount aside each month to plan for some vehicle repairs, doctor visit, or new appliances for example. It’s best to never go in debt for these kinds of things. So a savings account is your best option.

5. Vacations

Planning a vacation is hard to do but when you do your budget right you’ll be able to include this in your month to month budget. Another great use of a savings account. At many banks you can open more than 1 savings account. This is a good idea for vacation planning. Know what you’ll need and when. Give yourself some time and save comfortably.

Creating a budget will help you spend your money wisely and you won’t forget a thing. It’s nearly impossible to remember everything so creating a spreadsheet with all of you expenses and extra things you want will help you maintain your budget. Budgets also help you see the bigger picture of your monthly and annual finances. It will only help you manage your money more succesfully.

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