how to plan monthly household budget



save money, how to plan monthly household budgetAre you trying to put a decent portion of your income in savings but don't understand where all the money is disappearing? Most of us wish we could save money, but fail to understand how and where to start? Well, the first step is to make budget planner. This will help you understand your income and expenses. Also, you will come to know where exactly your money is going, how to utilize the income and increase savings by cutting off unnecessary or low priority expenses. Follow the following points to make your own monthly budget plan. Start today and get the control on your expenditure.

1) First month, just observe how you spend your income.
First, Calculate you total income. If you are doing multiple jobs or getting income from investments or other sources, just sum up all the incomes. Important thing to remember is, count your net income after deducting taxes (In hand income).
2) Note down your essential expenses like grocery, mortgage, electricity, rent, car maintenance, payment, gas etc. Also write down other general expenses. Categorize the expenses. Try to stick to 10 to 20 categories.
3) At the end of the month, you can figure out the difference between your income and expenditure. If you are spending more than your income or you end up saving very less money then find out which expenses are likely to be less important.
4) List down all non-essential expenses which are not much necessary and can be avoided.
5) In the following month prepare the income-expenditure strategy.
Some expenses are very essential which cant be avoided or reduced. So, Focus on other expenses that can be reduced. Estimate how much you can save by changing your habits or using creative ways. Fix the amount for each expense and try to stick to it. You will get the result, you can reduce your expenditure and save pretty good amount of your income.

Have a quick look through some easy ways to save money.


Help out yourself with the following two basic monthly budget format. Click to download the excel sheets
For Monthly Budget Planing: Average-Family-Budget.xls
For budgeting expenses : monthly-household-budget.xls



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