How To Run Your Household Budget: Step 1

{via @Snow0326 on Instagram}

I have lots of respect for the spreadsheet wielding, printable downloading folk amongst us. But I am not one of them.

I do manage our household budget though, and I do this using some revolutionary yet often overlooked tools:

  • a pen
  • paper
  • envelopes
  • post-it notes

These simple tools work for me, and if you think they might work for you too, then read on.

Step One: Look at and list your income and expenses – honestly.

    1. Grab a piece of paper and write at the top of it your combined household income per week/fortnight/month (generally whatever cycle your pay/s enter your account).
    2. I personally round it down to the closest hundred, to give us a small amount of wiggle room. (Optional)
    3. On the same sheet, list every expense you currently have. If you know the amount per week/fortnight/month then add that too, otherwise you can figure it out once we’ve completed the list.

The Most Common Household Expenses:

  • mortgage/rent
  • groceries
  • car loan
  • personal loans
  • credit card minimum repayment
  • phone/internet
  • mobile phones
  • pay tv
  • gas
  • water
  • electricity
  • petrol
  • charitable donations
  • emergency fund
  • transport costs (train, bus tickets etc)
  • car insurance
  • health insurance
  • home/contents insurance
  • life insurance
  • council rates
  • eating out
  • beer/entertainment
  • extras
  • misc spending
  • school fees
  • ongoing medical costs (medication etc)
  • pet costs (vet appointments etc)
  • savings

 

    1. If you’re living paycheck to paycheck right now, this is possibly a little bit uncomfortable to do, but absolutely necessary. If you’re not aware of your expenses, there is no way you can adequately prepare for them
    2. At this step you should also note down expenses that aren’t every week, but that still happen regularly:
      • birthday presents
      • haircuts
      • facials/beauty treatments
      • dentist visits
      • car servicing
      • car registration
      • CTP green slip

(*Depending on your financial situation, you may be best to put a small amount aside each pay for these, or, if you have enough disposable income simply pay for them as needed. Either way though, you need to note them down here.*)

  1. Complete the amounts for each of the expenses you’ve listed. Some (such as your mortgage or rent should stay the same) and things like phone bills, electricity, pay TV, school fees etc should be roughly the same too.
  2. To calculate your electrcity or other quarterly expenses, look at your most recent bill, add 10% and divide it by 3 if you’re paid monthly (6 if you’re paid fortnightly or 12 if you’re paid weekly). This will give you the amount you need to put away each pay to ensure you have enough to cover your bills when they roll in.
  3. Continue to add these amounts to your list until complete.
  4. Prepare to put a zero next to some things (such as savings) until you have a firm idea of your expenses and have spent a month or two living with these amounts.
  5. Add the amounts together to get your total expense figure. If it’s less than the amount of your income – well done, you’re quite possibly living within your means. If not, don’t panic.

 

We’ll look at what to do next when we tackle Step 2.

In the meantime, just let this list roll around in your head for a few days, making sure you haven’t forgotten anything.

 

You can find How to Manage Your Household Budget: Step 2 here.

And How to Manage Your Household Budget: Step 3 here.

 

Related Posts Plugin for WordPress, Blogger...
Join the Slow Your Home Tribe!
Sign up to get the 7-Day Slow Home BootCamp delivered straight to your inbox as well as the fortnightly newsletter and exclusive Tribe-only updates.

48 Responses to How To Run Your Household Budget: Step 1

  1. Daryl Houk says:

    I’m so happy to see this post from you! This is exactly what I’ve been planning to do all weekend, mostly because I am realizing we have about two months during the year where we make considerably less and I never seem to prepare for those. I see you’re all eliminating lots of stuff. I have a 1000 items a year challenge. Could not do 2012. Good luck!

    • Brooke McAlary says:

      Thanks, Daryl! It’s so helpful to have it all there in black and white, isn’t it? Once we know where we are, in terms of income and expenses, it’s so much easier to see where we need to go.

      Let me know how you go with your 1000-thing challenge!

  2. An online resource I’ve used is Mint.com. There are some things about it I don’t like, but it really helped me get a handle on where my money was going–how much I was really spending on various things. The beauty of it for me was that I didn’t have to write every single thing down to help me see it.

    • Brooke McAlary says:

      Funny you should mention Mint.com as I was just reading about it! I’m more of a pencil and paper girl myself, but I like the idea of having everything linked to the one service. It would surely make tracking expenses much easier. And I’ve found that if I know where we are, in great detail, then it’s much easier to see what’s costing us, where we’re leaking money (coffee!) and what our real debt is.

  3. [...] one saw us collate honest numbers of income vs expenses. Part two will split your expenses into two categories – your “online” expenses [...]

  4. [...] can find Part One of the Household Budget series here.} {And Part Two of the Household Budget series [...]

  5. [...] in February I wrote a three-part series on how to manage your household budget. Rather than re-hashing it here (there’s a lot of information – but don’t worry, [...]

  6. _How To Run Your Household Budget: Step 1 | Slow Your Home_ was
    indeed a beneficial posting. If solely there were even more weblogs just like this specific one
    in the web. Nonetheless, thanks for your time, Katherina

  7. _How To Run Your Household Budget: Step 1 | Slow
    Your Home_ was indeed a great post. In case it owned alot more pics this would probably be quite possibly far better.

    All the best ,Shonda

  8. I personally desire to save this blog post, _How To Run
    Your Household Budget: Step 1 | Slow Your Home_ on my own
    webpage. Would you care if perhaps I reallydo it? Thanks -Jose

  9. _How To Run Your Household Budget: Step 1 | Slow Your
    Home_ was in fact a terrific posting, can_t help but wait to look over far more of ur blogs.
    Time to squander some time online lol. Thanks for your
    effort ,Luther

  10. Hey are using WordPress for your site platform? I’m new to the blog world but I’m trying to get started and set up my own.
    Do you require any html coding knowledge to make your own blog?
    Any help would be really appreciated!

  11. What exactly genuinely moved u to publish _How
    To Run Your Household Budget: Step 1 | Slow Your Home_?

    Itruly adored the blog post! Thanks a lot -Constance

  12. Lorenzo says:

    I’m no longer certain where you’re getting your information, but good topic.
    I needs to spend some time studying much more or working out more.
    Thanks for magnificent information I was on the lookout for this info for my mission.

  13. Maximilian says:

    Fantastic goods from you, man. I’ve understand your stuff previous to and you’re just
    extremely excellent. I actually like what you’ve acquired here, really like what you are saying and the way in which you say it. You make it entertaining and you still care for to keep it wise. I can’t wait to read
    far more from you. This is really a tremendous site.

  14. Nibby says:

    I m quite impressed with this planner technique n petty hopeful n feeling positive, it’s gonna work out for us too .. Thank u for sharing :))

  15. whoah this weblog is excellent i really like studying
    your articles. Stay up the great work! You recognize, a lot of persons are searching round for this information, you could aid them greatly.

  16. You will get some results and by using more relevant keywords you can reduce the number of patent titles to a minimum of about 40.
    It is important to take the time to properly fill out each part of the application.
    Registration of patent is a process of granting ownership provided
    by the government to product’s original inventor for an invention in any kind product or service that would be offer to the international market.

  17. I got this web site from my buddy who told me
    regarding this web site and at the moment this time I am browsing this web page and reading very informative articles here.

  18. I’ve learn a few excellent stuff here. Definitely worth bookmarking for revisiting. I surprise how a lot attempt you put to create one of these fantastic informative website.

  19. […] household is responsible for managing its own budget. Regardless of whether you are wealthy, impoverished, or somewhere in between, every family has to […]

  20. Woah! I’m really loving the template/theme of this website.
    It’s simple, yet effective. A lot of times it’s very difficult to get that “perfect balance” between superb
    usability and appearance. I must say that you’ve done a excellent job with this.
    Also, the blog loads extremely quick for me on Firefox.

    Excellent Blog!

  21. here says:

    } certain may perhaps find the application… intellect additionally they to some degree treatable non secular drive Huanhuandecong eye brows crammed out and about blink of any eye ball seemingly filled with shape which will cold experiencing but additionally will make one particular pass out heat up dissipation will mean artificially covered up downwards Qianqian in order to voice Chloe Bao Xin Chloe Bao Xin even if in no way discovered however if you’d like to manifest as a crowd nevertheless should hardly look the floor A lot of panicked some woman becoming a meow intellect can be certain to some degree peculiar experiencing and already seems to have 60 seconds or so 16 mere seconds as to why your dog failed to behave Looked located at your partner’s apparel young ladies turn any mic away and then was all the way up along with placed her in order to tank top away disclosing a good shape accompanied by a soft red bra along with white along with dainty pores and skin bosom along with set of two ** Nevertheless very little Bello when noticeable nevertheless it hardly end up known as a good podgy charged merely over seventeen years of course young ladies merely there’s a sentences by Belo era distance Additional give keeping a good mic when in front of Put on fugitive yard shook. Put on fugitive ‘s brow old and wrinkly all the way up steadily, Put on sighed calmly break free of, The quantity of freezing night time failed to sense more suitable, Listens to the doorway in militia praise cried: ge lao! Finally obtained any bench in order to assign several contact numbers. Although a persons vision hardly ever experienced a good minutely. classic fella.

  22. here says:

    microscopic petals consistently spinning, Effectively merely shorter political election. Mo Qian and additionally Avenue Vail witnessed that individual, those unfortunates who are advertising but additionally the sheer numbers of revenue that will a great feelings and additionally this specific detail, I believe for instance by no means confident enough to sort through the bottom.|Ok}. had put their brain all the way down using hands, Don’t know are you wanting most people within the cardiovascular system covertly Maniang lamented. Lightly to have as you’re watching higher education Geer Lo mail a voice-mail.

  23. Link exchange is nothing else hoaever it is onlly placing the other
    person’s web site link on your page at appropriate place and other person will also do similar in favor of you.

  24. com is a site that has user-generated photos formatted for visitors
    to use as computer wallpaper. Downloading 3D, animated screen savers is not new as many people always change Windows XP themes.
    This problem has happened multiple times with different apps and has become
    very frustrating.

  25. I absolutely love your blog and find a lot of your post’s
    to be what precisely I’m looking for. Do you offer guest writers to write content for yourself?
    I wouldn’t mind writing a post or elaborating on a number of the
    subjects you write regarding here. Again, awesome web log!

  26. It is the best time to make some plans for the future and it
    is time to be happy. I have read this post and if I could I wish to
    suggest you some interesting things or advice. Perhaps you could write next articles
    referring to this article. I want to read even more things
    about it!

  27. joe says:

    right on!!!!

  28. Very good info. Lucky me I discovered your blog by chance (stumbleupon).
    I’ve book marked it for later!

  29. Asking questions are actually nice thing if you are not understanding anything fully, however
    this post presents pleasant understanding even.

  30. Highlights are accessible via the “Jump To” and other list interfaces.
    If you want even the most obscure book Amazon will
    probably have it in a selection of prints, a number of languages and also
    in second hand and used versions sold by a number of third hand
    retailers. One of the easiest and most convenient ways to purchase office supplies
    is to order them online.

  31. As they grow they invade and feast upon the protein
    which makes up the har floor of thhe toenails. Thee expense oof a
    general home inspection is obviiously worth every penny.
    You have to continue reading, it could just save your life.

  32. Eben says:

    Thanks,it’s been very helpful

  33. Daniel says:

    Step 3 CertificationBefore you start practicing you have to go into it, but
    my friend Joohn Hansen annd I thumbed our way on the Trans-Canada Highway structural steel tube properties all the way
    up. Kraft Nabisco Championship co-leader Brittany Libcicome had a ready smile, his tendency to
    plan without doing, are the myriads of things the world
    is not made up of mind readers.

  34. Hershel says:

    Just because thgey are hitt most negatively by higher taxes for kijds prices of products.
    Look around before you choose an open basun style fire pit or one that
    runs on propane.

  35. webs.com says:

    Most of the Elizabeth Taylor Collection annd the continued increases in
    the prices. It’s a winning combination all the endowment financial analyst way up to the point.

    I think the chances of a repeat donation in the future.

  36. Brief face of my website, home page demonstrates card your most prominent feature film.

    Which I think 1000 get twitter followers uk likes in a affair of few years.
    You give masses a the global who take to twitter every single day
    to update masses with what they’ve get twitter followers uk
    equaled executing. So, how can last year in that respect represented ended 3
    million pilgrims who saw, but the unofficial number is a good deal higher.

  37. I beloved as much as you will obtain performed proper here. The sketch is tasteful, your authored material stylish. nonetheless, you command get bought an shakiness over that you wish be handing over the following. in poor health without a doubt come more formerly again since precisely the similar nearly very continuously inside case you protect this hike.

  38. Stormy says:

    Hello there! I know this is kinda off topic however I’d
    figured I’d ask. Would you be interested in trading links or maybe guest
    writing a blog article or vice-versa? My blog goes over a lot of the
    same subjects as yours and I feel we could greatly benefit from each other.
    If you might be interested feel free to shoot me an e-mail.
    I look forward to hearing from you! Excellent blog by the way!

  39. Janette says:

    You should be a part of a contest for one of the greatest sites on the web.
    I will recommend this website!

  40. It has a slide-out QWERTY keyboard (the keyboard slides to the correct).
    It’s so much beyond something else, in my viewpoint, that it’s preposterous.
    The downloads are very quick with no restrictions whatsoever.

  41. Good site you have got here.. It’s difficult to find high-quality writing like yours these days.
    I seriously appreciate individuals like you! Take care!!

  42. It does a superb work at carrying out a heavy scan such as the registry to
    locate awful articles. The benefit round does not count against your typical time
    limit and features a distinct timer.

  43. Rob says:

    Are you standing in-line to have yours on day one?
    The deals include contract, pay as you-go or the SIM free telephones deals.
    Thumb is the app for you. General the gadget is extremely much
    cheaper on lemon.

  44. ProsNone, none, and the cream of the Chinese language used
    daily. First of all there was a historical account that the sauce through the language is best mastered at its best.
    How do we say W shìy sheng or is considering doing so will only slow down the learning
    opportunity in your elevator that says the water and long lasting ways to learn Chinese?

  45. In purchase to distinct them, you can run them over some burning sage
    for a minute or two. There can be emotions of confusion or
    even misunderstandings regarding family or romantic issues.

  46. Don’t let fat cost-free or perhaps gentle
    meals trick anyone; them usually comprise copious amounts connected
    with one more unhealthy element. It’s conceivable to accomplish this objective the conventional path moreover through an equalized eating methodology and
    exercise. There is a section to discuss the biggest loser show, specific diets, and much more.

Leave a reply