Things You'll Need:
- Computer
- Internet
- Budget or Spreadsheet Software
- Household income
- Household expenses
- Paper
- printer
- calculator
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Step 1
First write down a list of monthly priorities including paying off debts, short or long term savings goals, retirement and investments, etc. before you set up your household budget.
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Step 2
Agree on a budget schedule which suits your household. If you are a dual income household, you may want to set up your budget to reflect both pay periods and if not set your budget up monthly.
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Step 3
Now write down all forms of household income earned monthly including salary, bonuses, household business earnings, real estate or investments, etc. and categorize them at the top of your budget.
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Step 4
Next brainstorm and write down every expense you have and convert into monthly amounts or to best suit your household budget schedule.
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Step 5
Group your expenses into categories like savings, credit and loans, household bills, auto, school, entertainment, work expenses, family necessities, personal needs, pocket money, and emergency.
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Step 6
Start after income on your budget and list your highest priority category of expenses and list all relevant household expenses under it. Then move on to the next highest priority category, etc.
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Step 7
Leave a category at the bottom titled Emergency Budget Fund and use this to provide a cushion when you go over budget and to pay for unexpected household expenses.
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Step 8
Make a column for "Projected Monthly" and "Actual Monthly" totals to allow for adjustments when balancing your household budget.
