Household budget forms are key when trying to understand your household finances. I once took a finance class and our first assignment was to write down EVERYTHING that we spend in a month. Guess how many students out of the class of 200 students completed the assignment? No more than 11. I'm embarrassed to say that I was among the huge crowd that slacked off after week two.
After I graduated I realized how fast money disappeared when I swiped my credit card and paid my cell phone bills. I looked up household budget forms and printed it out. A household budget form helped me understand my unnecessary spending and subscriptions I should have canceled long ago.
A household budget is the process of planning how your income should be distributed to pay your expenses.
Household budget Tip One-Identify your sources of income
A good household budget also takes into consideration the payment of state and federal taxes, which sometimes can be reduced by taking advantage of government incentives.
Identify your sources of income:
* Wages
* Social Security
* Interest/Dividends
* Child support
* Alimony
* Pensions
* Other
Identify your expenses:
* Housing (mortgage, rent)
* Utilities (gas, electricity, water)
* Food (groceries, restaurants, carry out)
* Medical (doctors, dentists, prescriptions)
* Clothing
* Telephone (cell phone, Internet)
* Cable TV
* Credit card payments
* Transportation (car payments, bus, subway)
* Insurance (car, home, health)
* Taxes (federal, state, social security)
* Savings for retirement, education, travel, etc.
* Other
Household budget Tip Two-Organize your bills and tax forms
Start getting organized instead of leaving those bills around the coffee table. You can start with a filing cabinet and file your bills into the categories above. I have made the mistake of just relying on online statements. Once I was trying to prove that I did not get refunded what was owed to me, however since I was not able to pull out the statement since it was more than three months old, I couldn't prove to the bank at the time. It was definitely a frustrating experience.
How much was it to get my past statements? Fifteen dollars. Had I been more organized and just filed them the old fashion way, I would have better control of my finances.
Household budget form Tip Three-Customize
Make new categories to suit your individual needs. Keeping your tax forms in hands reach is also key. The tax forms contain a summary of your wages and the amount of tax that you paid. Add up your monthly expenses and your monthly income to start your budget planning. You can use the worksheet at the bottom of this page as a guide.
Household budget form Tip Four-Assign priorities to your expenses
Your expenses for housing, utilities, food, medicines, and clothing are indispensable. Insurance and taxes are unavoidable. Expenses for restaurants, entertainment, and social activities are discretionary. If you have long-term goals, such as traveling, you need to set money aside just as you would for any other expenses.
Household budget form Tip Five-Pay off the debt
One of the best ways of saving money is by paying outstanding credit card debt. Most credit cards charge from 18 to 21 percent per year. You lose about twenty dollars out of every hundred dollars when you carry a balance on a credit card. Accelerate your payment schedule to pay off the credit card debt as soon as possible. Once your balance is zero, you can still use your credit card, but pay the new balance in full when you receive the bill to avoid monthly interest charges.
Household budget Tip Six-Cut out unnecessary expenses
Where do you get the money to pay down debt? You eliminate unnecessary or discretionary expenses. If you use your imagination, you can come up with many ideas to reduce expenses and increase your sources of income. Here are some suggestions:
* Give up the Starbucks. Brew your own coffee.
* Take your lunch to work.
* Cancel your cable TV. Start reading books from the library.
* Skip expensive restaurant meals and cook at home.
* Stop buying junk food, soft drinks, and snacks.
* Go on a diet. Cut what you eat by one third. By becoming slimmer you will also avoid medical complications from being overweight such as cardiovascular diseases, high blood pressure, and diabetes.
* Check with your doctor or pharmacist to see if you can replace some of your prescription medicines with less expensive generic medicines.
* Form a car pool and save on gas.
* If your work permits, work from home at least one day per week to reduce your commuting costs.
* Work two extra hours per day to reduce your workweek from five days to four days. This also reduces commuting costs.
* Have a garage sale and get rid of the clutter in your home.
* If the values of the homes in your neighborhood have gone down, you may qualify for a lower assessment and lower property taxes.
* Reduce your heating and air conditioning costs by closing unused rooms and keeping the rooms slightly cooler in the winter and slightly warmer in the summer. Wear appropriate clothing for the season.
Start getting your household budget form together today!
Identify money you did not know you spent and areas you can save money.
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