Family Budget Planner Spreadsheet– How to make a balanced family budget
I want to save more but I can’t. I always run out of money at the end of the month and I don’t know where my salary goes. I would like to have more control over my finances. Does any of these three statements sound to you? These are the most repeated doubts among Preahorro users who want tools to better control their expenses and the trick to develop a balanced family budget.
Your home economy will be balanced as long as income always exceeds expenses. That is, have the ability to make your commitments and even save – another issue is that you save more money every month. With this clear if you want to control your expenses there are two basic ways to do it: through a balanced budget or with other tools to control expenses.
The first formula is the most classic, to which we are all accustomed. The second is less orthodox. The way forward will depend on your profile and, above all, on your willpower.
Family Budget Planner Spreadsheet
What is the use of making a household budget?
A family budget is a document that collects the income and expenses you have at home. Basically it serves to have a control of the money that enters the house and the one that comes out. It also serves to make projections on family finances and create a calendar of bills to pay each month.
To understand it better, with a domestic accounting budget you will know what your income is (the simplest part) and you will know what you spend the money on. In addition, you can see even which are the months where you have more fixed expenses and which are in particular. This will allow you to take steps to save more money on expenses that really matter to you.
The key is that with a good annual budget you will make informed decisions and not based on your perception of how your personal finances are.
Advantages and disadvantages of having a budget
Having your own expense and income template has its positive points. Specifically, there are three advantages of having a budget for your personal finances:
You know your saving capacity. A budget collects income less expenses. What about will be your ability to save. If you want to save that money effectively, here you can see the secret to do it.
You are clear where you spend your money. If there is a way to control your expenses and know how you leave your salary each month, it is through a budget. If you’ve never done one, this part is the one that will surprise you the most.
You know your debt ratio. If your family budget is not balanced you will easily see how much you spend more each month. If you have debts, you will see in a single stroke how many loans you have, how much they amount to and what they are. With this data you just have to use the method that works to end debts.
Faced with these advantages, there is a single and great inconvenience: a budget is not for everyone. Keeping household accounts requires effort and perseverance. In the next section you will better understand why.
How to make a balanced budget for the home
You can create your personal budget in just five steps. Let’s see them!
Calculate your monthly and annual income
Add all you earn per month and year. Count only on fixed income, which you are almost certain to the 100 you will receive. Include all your sources of income here, not just your salary. An example of how to put the income in your budget would be the following:
Salary and income from work. What you charge on your payroll and even what you can perceive as a freelance for sporadic collaborations. In other words, what you get paid for dedicating your time to work.
Investments and taxes. Dividends, sales of shares, investment funds … In this section you must put the income that comes from your savings, but only those that actually reach your account. If you save in the long term taking advantage of compound interest and your savings generate 4% a year it doesn’t matter, since that money will continue to be invested. In the case of taxes, you can put the rent back. If your situation does not change from one year to another, you will have an estimate of the income tax return result.
Passive income If you have a rented apartment and receive a monthly rent, this is where you should put it. The same applies to any passive income you generate. If you still do not, here you can see some ideas of passive income.
If you want to simplify the budget in this section, eliminate the extraordinary income, which will be mainly those of investments and taxes. In other words, if you are not a market professional and only occasionally sell stocks, leave them out of your income structure. This way you will avoid distortions in your personal accounting that can make you think that you have a recurring income that is not such.
Calculate your fixed expenses
Search in drawers, connect to your online bank, look at your credit card … Do it however you want but collect all the fixed expenses you have per year and go including them in your family budget template (below you can see several models of free domestic accounting that you can download).
It is important that you divide your expenses by categories. The number of spending areas on your personal budget sheet is up to you. Insurance, television, mobile, electricity … Everyone should be in this area.
Here you can see a distribution as an example
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