How Do You Create A Household Budget?
You can get a handle on your daily expenditures by creating a household budget and sticking to it. Just follow these steps. Write down every expense for two months. You are not on a budget yet, so spend money as you normally would. This will give you a real indication of where all of the money goes. Break down this two-month expense list into two categories: fixed expenses and variable expenses. Fixed expenses include mortgage, car payment, insurance and recurring bills like phone, cable and Internet. Suggestions for variable expenses include transportation, clothing, groceries, entertainment and childcare. Create a miscellaneous category for expenses that do not fit into a standard fixed or variable field. List all income sources from all members of the household. Allot a monetary spending amount for each category, based on the expense list you collected the last two months. Total the categories. Determine if the expenses are less or greater than the income. If you spend more than you
