Method of planning the family budget
Family budget planning method how to plan a family budget? This question is most often asked in two cases: if you are tired of living in a situation of lack of money and debt, or if there is someone scrupulous and pedantic among the newlyweds. We will not review all the features of the Network now, but will discuss a method based on logic and practicality.
Let’s turn to terms. Budget (bougette-bag, purse, leather bag) – a certain amount of money, which varies depending on expenses and income.
So, following the logic, what should be done? Right! Determine income first, and then expenses.
So, what we contribute to income: salary, bonuses, additional earnings. If the salary or bonus is not fixed, consider the minimum. Then you will be insured against redrawing the budget. Of course, in one month it can be 15,500, and in another, for example, 23,200. But you will always find an excess of money where to attach it, but the lack can lead to unpleasant consequences.
Type of income Amount of income note
The husband’s salary is 15,500
The husband’s bonus is 3000 Once every three months
Wife’s salary 12700
The wife’s bonus is 4000 once every two months
Additional earnings 4000
Total 32 200 – 39 200
We have decided on the revenue. In the total column , there are two amounts, the minimum and maximum. Now we start spending.
To make it clearly visible where the money goes, try to fix all sorts of expenses for a month or two and collect all the checks. Involve the whole family in this, otherwise you will not get the proper result. When I analyzed my spending, I was surprised, disappointed, and encouraged at the same time. Surprised by the discovery of how much money is spent on useless little things (cake, hairpin), disappointed that I thought I was spending money correctly and encouraged by the news that the situation may change for the better.
Expenses can be divided into the following categories: necessary (housing, food, travel) and desired (entertainment, gifts). Or permanent and one-time. As you prefer, and distribute. You can not differentiate expenses at all, just write everything in a single stream.
Type of expense expense Amount for the month note
Travel + taxi
Expenses for kindergarten, school
Birthdays and holidays
Medical services, first aid kit
Going to visit
With spending type of clothing, shoes, if you do not plan to buy it every month, you can do so. This year, you need a winter down jacket, your husband-a ski suit and boots, your son-sneakers and an autumn jacket, and your daughter-a dress for the prom in kindergarten and boots. All major expenses (except underwear, tights, and other small items) are summed up for the year, and then this amount is divided by months. It turned out you have 24 thousand – so, 2 thousand a month you make in the column “clothing”.
As for “desirable” expenses, they include everything that you will lose in case of force majeure. Remember – the more detailed you write out the expenses, the more you are insured against unforeseen situations.
You can use the widely advertised online envelope method. You sign the expense item on the envelope, put the money there, and then spend it as needed.
All the graphs are painted? Have the required amounts been paid? Now calculate the total amount of spending and compare it with the minimum amount of income. It’s an interesting picture, isn’t it?
And what to do with premiums? This is a significant income, even if not monthly. Depending on the final result, the following options are available:
If your income exceeds your expense, you can use additional Finance to increase your desired spending.
If your expense exceeds your income, balance your expenses with additional Finance or learn how to save money.
If your income exceeds your expenses and all your desired expenses are taken into account, just save money.
About saving money. Some families put this issue at the forefront. Get paid-set aside 10% of the amount in NZ (untouchable reserve). In a few months, a sufficient amount is accumulated. It can be used in unexpected situations (loss of phone, unscheduled visit to the dentist, purchase of medicines), put in a Bank account or go on vacation in the summer. Each family decides this for itself.
There are a lot of options for budget planning, but the proposed method is the easiest. Start with it or develop your own, optimal budget planning option.