What are some simple tips for budgeting your household income?


Quick Answer

Tips for budgeting household income include listing all sources of revenue, expenses and debt; maintaining personal discipline; using cash instead of credit when shopping; and prioritizing debt payment. Strive to cut down on habits that cost money, learn to save on necessities, and build in an allowance for unexpected spending.

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Full Answer

When budgeting household income, the first step is to list all the available income for the household. The amount should be realistic and include all income from wages, salaries, pensions, benefits and contributions from members of the family. Also include any additional earned income such as tax credits.

List all household expenses such as housekeeping, housing costs, council tax, telephone charges and travel expenses. Again, try to make the amounts as realistic as possible. Also include any money set aside for unexpected contingencies and events such as needing to replace or repair essential household items.

Have personal discipline and make easy it to stick to the budget by leaving the credit card at home when going shopping. Use cash for payment, and carry just enough to cater for the budget at hand. Prioritize debt payments, as the high interest on debt makes it difficult to keep to a budget. Once your debt has been paid off, try as much as possible to avoid accruing further debt.

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