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Create a household budget without the headache

create a household budget

If you want to keep a smart eye on where your money is going, you should create a household budget to allow you to manage today and plan for the future.

Your household works like a business. They have income and expenses — so do you. Imagine being the CEO of this company. At the end of the year, you would ideally have earned more than you have spent — and have money left over to fulfill a dream, for example, or to save up for something special. 

Sounds good! But for that you should know how much you spend on what you spend it on. This allows you to see at a glance what’s left of your earnings every month. And you’ll see more quickly where you can save even more. So your household budget at the end of the year will show the highest possible profit, as with any successful company.

Create a household budget: Where is your money going?

When you create your household budget, it is important that you are honest with the information. Only then does the budget exercise benefit you. Even if you are planning or wishing to spend less on clothing and leisure. You should use the current amounts in the household budget. For example, if spending on some items fluctuates dramatically, you can take the average of the last six months. 

What to list

To calculate your household budget, list your most important income and expenses separately. To do this, you first calculate your total income from wages, premiums, pension entitlements, assets. Then carefully assess your costs according to the individual areas of insurance, housing, taxes, household, health, mobility and leisure

Use a calculator

If you do not want to list everything yourself, there are some helpful tools. Among other things, there is the EPI’s Household Budget Calculator. In it, you simply enter information like which state you live in, how many children you have, your income and expenses, etc. As you type, the calculator automatically creates your household budget.

Create a household budget: how it helps you save money

If you manage your household budget with a planner, you’ll see in detail how much your car and your phone cost each month. And the car from your partner. And the phones of your children. And everything else as well in total…

When you create a household budget, it will also help you to identify savings opportunities. It will assist you in drawing up your budget by automatically categorizing and visualizing your expenses. A calculation shows how much you spend each month and what you spend it on — and some calculators can show you the information in a handy pie chart. The bigger the cake piece, the bigger the output.

In addition, you can use the budget to help you set spending limits and savings targets.  If you take a closer look you will also see where your household can best save. Are you maybe insured twice? Do you pay for subscriptions or memberships that you do not use at all? You will be astonished how much money you can save.