This category includes things like fuel for your car, groceries, as well as entertainment costs – such as going out to eat, drink, watch a movie - or vacations and other travel expenses. These are bills you have to pay monthly but have totals that can vary – things like gas, electric, water and phone bills, as well credit card payments. Don’t forget regular but occasional things like car or life insurance bills. These are costs that stay the same - things such as rent or mortgage payments, car payments, student loans and your cable bill. Here are some important expenses to track: You’ll be able track what you’ve paid for with your debit card, as well as any paper checks you’ve written. If you don’t keep your monthly bills handy, sign on to your online bank account and check your monthly statements. That will give you average monthly totals to use for your budget. If you can find your expenses for a full year, get those totals and divide by 12. If you only have 3 months worth of bills, add those totals and divide by 3. The more numbers you can include, the more likely you are to have a realistic picture of your actual expenses … and the more likely you are to not overlook occasional costs. If possible, review all your bills from the past year. Start by making a list of the money you spend - and what you spend it on - keeping in mind that the number is likely to vary from month to month. Thinking of all the things you spend money on will take some work, so don't get frustrated if it doesn't all happen in a single sitting. Household budget: Tracking your expenses – expected and unexpectedĪ big first step in creating a household budget is figuring out your monthly expenses. While you can – and should – make adjustments each month as necessary, make sure you also take a look at your spending and income at the end of each year so you can set goals for the coming year. Whether you purchase a computer program to enter and track your income and expense categories, do your budget online, or with pencil and paper at home, make sure to record the numbers and total them up every month. The basics are straightforward: How much money do you have, and how much do you spend? With a good budget, at the end of each month you can compare the list of your expenses with your income. It can even help you plan for the unexpected - a trip to the hospital, a costly car repair, or a broken water heater. Have you set up a household budget yet? It’s a great tool for tracking your monthly expenses and income – and planning for the future.īesides helping you get organized, it also allows you to focus on two important things: How much money you have in the bank, and how much your bills cost you each month.Ī realistic budget can help keep your revenue and expenses in line, and can even be a roadmap for setting realistic saving goals – whether it’s for a new car, a fun vacation or the day you retire.
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