Budget Planning for Adults and A Sample Budget
Household budgeting can be tricky. People often forget to include the small expenses such as taking into account the daily trip to the coffee shop. By the same token they may also forget the large expenses or simply failing to plan ahead for items like replacing the tires on your car, which may not be an emergency expense, it is, however, a foreseeable one. Taking these items into account will help you work out a budget that fits your family and lifestyle, while keeping your expenses within your means.
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Annual Budgeting
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Starting with a yearly budget allows you to put things in prospective. An annual budget is the basis for future projects and lets you plan ahead for things like vacations, travel, gift giving and other large, single expenditures. While you may not be able to account for every possibility, take into account items like regular auto repairs, house repairs, insurance costs and medical visits for each member of the family. By spacing these things out over the course of the year, you'll be able to schedule them for times when they'll be most convenient for your budget.
Boil It Down
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You can break your budget down into the monthly and weekly expenses. Generally, a monthly budget is sufficient, but when just beginning your budgeting breaking it down to the weekly budget can help you get a handle on the smaller expenses that often get lost. Record your expenses for the first few weeks, writing down even the daily coffee and muffin because the small expenses add up. Just $3 at the café a day adds up to $1,095 over the course of the year.
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Compare Your Expenditures
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The U.S. Bureau of Labor Statistics offers a consumer expenditure survey on its website. Using this resource you can learn what the other households similar to yours spend on everything from baked goods to health care. Comparing your spending to the average spending helps you see where you might need to cut back.
Sample Budget
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Record your monthly expenditures, recording your rent or mortgage, savings, utilities including electricity, gas, water, sewer, phone, Internet and cable, and food budget. You should split your savings into an emergency fund and a long-term savings fund. Record your entertainment budget for the month, any donations you make on a monthly basis, insurance and auto expenses. Total up all of your expenses and deduct them from your monthly income.
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References
Resources
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