How to Create a Simple Household Budget

Learn how to create a simple yet effective household budget in three easy steps.

Difficulty: Easy

Instructions

Things You'll Need:

• A piece of paper
• A pen
• A calculator

1. Round your household income down to the next whole dollar amount. Write this amount down on a piece of paper.

2. Make a list of all of your regular household monthly expenses and the amounts that you pay on them. When writing these amounts down, round up to the next whole dollar amount.

3. Subtract your expenses from your income to determine your expendable cash.

Tips & Warnings

• By rounding your income down and your expenses up, you are creating a built in cushion for unexpected expenses that pop up throughout the month.
• If your expenses total a larger number than your income, you are overspending and need to determine which expenses to pare back on.

Resources

• Click here to download a free budget worksheet

[budgetmom]

on 4/21/2009 Great tips! I do this each month and it does help provide a cushion.