Household Budget Tools
Household budget tools range from low-tech methods such as pencils, paper and envelopes to high-tech methods such as software programs and calculators. One thing that all household budget tools have in common is that they are a means to an end when it comes to planning budgets and tracking spending.
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Paper
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Paper is one of the most basic and yet most effective household budget management tools. Budgets recorded on paper are portable and can be easily shared with others such as a spouse or partner if needed. Paper can also be used to write down expenses and to plan for longer term projects.
Although many people now use high-tech methods for budgeting, budgets created on the computer often end up printed on paper.
Spiral notebooks and binders are great ways to keep track of expenditures.
Envelopes
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Envelopes are another low-tech and old-fashioned but effective budget tool. Envelopes are great for those who choose to use cash for a lot of expenditures such as groceries, clothing and eating out.
Most people who use an envelope system for budgeting put a set amount of cash in an envelope in a particular category for a specified time period. For instance, a family using the envelope system for budgeting may put $100 for groceries into an envelope labeled "groceries" at the beginning of each week. When the money is gone from the grocery envelope, no more money is spent on groceries until more money is added to the envelope.
Envelopes are also a great way to keep receipts. Items purchased can be written on the outside of the envelope and the receipt can then be placed into the envelope. This method provides a simple accounting method for those who prefer a low-tech uncomplicated budget system.
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Calculators
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Calculators make it easier to add up daily, weekly or monthly expenditures and also make it easier to balance a checkbook.
Online calculators are useful for figuring interest rates, how soon debt can be paid off or how expensive of a home a person can afford.
Computer Programs
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Computer software such as Microsoft Excel is useful for tracking expenses and determining how someone is doing on his budget. Most spreadsheet applications add up the totals in a particular column so that all an individual has to do is plug in the information to find the balance in each budget category.
Some prefer to use more complex computer budgeting programs such as Quicken.
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References
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