Or you might be able to save more if you get a pay rise or you pay off some debt. A monthly budget (the most common type) lists all of the income a household brings in each month and the expenses that the household must pay each month. Your budget needs to work for you and your lifestyle so it's important to adjust your budget as things change.įor example, if your expenses start to increase you may need to reduce your spending, or change your savings goal. Even a small amount set aside regularly will make a difference. Having some savings can create a safety net for unexpected expenses. Once you know how much money you have for 'wants', you can work out how much of it you'd like to save. If you have a savings goal you can use your budget to work towards it. This will help you to see where it goes and keep within your spending limit. Make a plan for what you want to do with your spending money. Essentially, this budget recommends that you use 50 of your take-home. Your spending money is for 'wants', such as entertainment, eating out and hobbies. One popular method for creating a budget is to follow what is known as the 50/30/20 rule. The money you have left after expenses is your spending and saving money. If you tracked your spending, use your list of transactions. Categories for household budget mortgage/rent HOA dues property taxes home insurance utilities cable, internet, trash, water & sewer, electricity, gas. Include what the expense is for, how much and when you pay it.
To make sure you've recorded all your expenses, look at your bills or bank statements. family costs, like baby products, child care, school fees and sporting activities.
For example, if you get paid weekly, set up a weekly budget. Input your household details to see the average budget of a person in your neighborhood Food 639, 639 Transportation 757, 757 Other 359, 359 Savings. Use how often you get paid as the timeframe for your budget. You can put aside money for bills and expenses and set up a plan to reach your financial goals.įollow these steps to get started. Having a budget helps you see where your money is going.