Household expenses, planned and unplanned, represent an important part of any budget. Expenses reduce the amount of disposable income available to the household which effects the ability to purchase everyday necessities and luxury items. Budgeting, an important concept in financial responsibility, requires households to take inventory of their current financial situation in order to map out a plan for controlling expenses and saving for future goals. Proper budgeting and planning requires an accurate tally of household bills and expenses.
Things You'll Need
Gather and organize the most recent statements for all of your bills and expenses. Statements help provide an accurate calculation.
Calculate fixed expenses by tallying these expenses. Examples of fixed expenses include car payments, mortgage payments and insurance premiums. Fixed expenses represent expenses which remain constant each month.
Calculate variable expenses. Variable expenses fluctuate over time and include electric bills, telephone bills and other utility bills. Use statements covering three billing cycles to estimate the average expense for utilities.
Take into account fixed quarterly and yearly expenses. These expenses can include car insurance and homeowners insurance. Convert quarterly and yearly expenses to monthly amounts by dividing the total amount due by the number of months in the billing cycle. For instance, to calculate the monthly expense of an insurance policy covering a one year period, take the total amount due and divide by 12.
Combine fixed and variable expenses. Calculate your household bills by combining your total fixed expenses and your total variable expenses. This represents the portion of your income required to meet monthly financial obligations.
- Photo Credit piggy bank image by Svetlana Privezentseva from Fotolia.com
How to Calculate Your Monthly Expenses
Calculating your monthly expenses is an important part of determining your monthly budget. If you don't know how much you actually spend,...
How to Calculate Overhead
Overhead refers to the bills your business has to pay even if no sales are being made. The monthly rent on an...
How to Calculate and Analyze Your Electric Bill
Figuring out how your electric bill is calculated by your utility company is a simple matter; analyzing your energy consumption is more...
How to Calculate a Household Budget
Making a budget is often a task people like to put off until a later time, or something perceived as painful or...
How to Calculate Household Expenses
Calculating your household expenses can give you an objective assessment of how you spend money and where you can make cutbacks. The...
How to Calculate Natural Gas Prices
According to the Energy Information Administration, the number of U.S. households and businesses consuming natural gas for energy use rises every year,...
How to Calculate Your Gas Bill
Calculate your gas bill in advance to avoid expensive surprises and spot potential mistakes on your bill. Checking the gas meter reveals...
How to Calculate Bill Rates Based on Wages
Calculating the bill rate for labor will require knowledge of local taxes, including unemployment tax, Social Security and Medicare. Bill rates also...
How to Calculate Power Bills
When calculating power bills, the important thing to consider is how much a power company is charging per hour. Check the power...