Housewives are often entangled in finding out the solution to ‘how to make an efficient household budget’. As per the domestic norms of the society, it is primarily the responsibility of the lady of the house to keep a track of the expenses and earnings taking place in the household. As a result, she is the finance officer, accountable for running the house profitably. However, as there are a number of things to be taken care of while planning the household budget, it becomes quite tedious to actually make one and stick to it. On the other hand, the absence of budget leaves you completely unaware of your financial resources. Therefore to know how to make a household budget effectively, read on.
Making a Household Budget
- The first thing to do before planning a budget is estimating your current spending patterns.
- Calculate your monthly expenditure by keeping the track of every penny spent. Think hard about your expenditure, making a strong mental note of where you are spending the money.
- At the end of each day, write down the list of expenditures and the items you spent it on.
- Now create your own current family or personal budget. For this, consider all the expenditures you counted above.
- Make a table and classify all the money you spent, into different appropriate categories.
- Include all your current personal or family spending in the budget. Be honest with yourself and do not underestimate your actual expenses.
- After you have tabled all the expenses, the picture is clear in front of you. You will know where you have spent more and where you can save.
- For future, change and improve your budget to meet your goals. Define the goal of your budget, so that you know what you want to achieve.
- In case you do not have a particular goal, try to improve on your budget by reducing your expenses, cutting down the areas of expenditure and finding out ways to increase your income.
- Once you have compared your expenditure with your earning, you will know how much resources you are left with. This tells you about your profits as well as your losses.
- However, the most important thing with the household budget is to follow it unconditionally and truly, otherwise the whole purpose of the exercise will be defeated.