The family budget is the structure of all planned and actual income and expenses of the family. Most often, such a budget is drawn up for a period of one month in order to trace the tendency of embezzlement, to learn how to save money, to enable all family members to set a certain goal and help achieve it. Each budget table will contain only individual numerical data for a particular family. And for proper planning and budgeting, you need to know some nuances.
- Why budget
- 50 /20/ 30
- budget allocation rules
- 50 /20/ 30
- 80/20
- 3-6 months
- Setting objectives
- Short-term goals( approximately 1 year)
- Medium-term goals( approximately 5 years)
- Long-term goals( 10-15 yearsand more)
- Definition of income and expenses
- Tracking monthly costs
- Needs and desires
- Budget for irregular incomes
- Budget table
Why budget
There are 3 main reasons for budget management:
- The life-cycle for a givenThe direction - if you select for themselves and their families long-term goals and go to their execution without spending all income on the little things, then you can go to a long-awaited vacation, buy vehicles, buy real estate, and so on.
- Reassessment of spontaneous buying habits - if there are already 5 similar paintings in the house with a landscape in a golden frame, then it makes no sense to buy another 2 or 3, because in fact they are not needed at all. The table of expenditures of the family budget will help to build priorities and reorient family members to achieve their goals, reduce spontaneous waste.
- Mandatory reserve stock of the family - it is never possible to foresee illness, loss of work, divorce and even death of loved ones. In such cases, there can be a serious financial crisis in the family, which will require a lot of money. That is why in the budget of the family there must necessarily be a "savings" or "reserve fund" graph.
Rules for budget allocation
The principles and rules for compiling a family budget will be the starting point for making decisions on current problems.
to contents ^50 /20/ 30
For the first time this rule is recalled in the literary creation of the authors Elizabeth and Amelia Warren "All your welfare: the main money plan for life."
A simple and effective way of drawing up a family budget - divides it into 3 main components:
- 50% of total income - funds that must cover all current household expenses: payment of services and housing, payment of taxes, purchase of necessary products and funds, clothes for normal existencefor one month.
- 20% of total income - non-compulsory expenses - expenses for personal purposes, entertainment.
- 30% of total income - payment of current debts( credit, debt), deferred funds to the reserve fund of the family.
80/20
- 20% of total income - payment of current debts and formation of a reserve.
- 80% of total income - payment of all compulsory family expenses and expenditure of funds for personal purposes of each family member.
3-6 months
For your own backup it is recommended to have a reserve deposit account in the bank - account of funds to cover a possible financial family crisis in unforeseen situations. It is best to form an account gradually, without the need to remove funds, so that they can be enough for the family for 3-6 months. Usually such a reinsurance amount will keep the family from making desperate decisions and will provide an opportunity to find ways out of the current situation.
Setting goals for
There are 3 main types of objectives:
- Short-term - imply personal goals for the purchase of inexpensive electronic devices, fashionable clothes, payment with small loans, debts and so on.
- Medium-term - mean purchase of vehicles, visits to museums and galleries, a trip to inexpensive interesting places.
- Long-term - most often the goals involve buying a home, paying a mortgage, retiring, traveling to long-term expensive trips, money help for children, education and so on.
Objectives should not be overstated, you need to act on your own capabilities and income level.
These calculations are examples, shown for clarity. Goals can be all your own.
to the table of contents ^Short-term objectives( approximately 1 year)
| Purpose | Estimated cost | Deadline for implementation in months | Required amount per month |
|---|---|---|---|
| Buying a rubber boat | 15000 | 10 | 1500 |
| Buying a kitchen set | 35000 | 12 | 2920 |
| Buying a skiing kit | 5500 | 3 | 1833 |
Medium-termpurpose( approximately 5 years)
| Purpose | Estimated cost | Deadline for implementation in months | Amount needed per month |
|---|---|---|---|
| Cruise | 150000 | 24 | 6250 |
| Gym with a minimum of projectiles( treadmill, Swedishwall, bar, dumbbells and other necessary trifles) | 120000 | 20-30 | 6000-4000 |
| Wedding | 250000 | 36-46 | 6944-5434 |
Long-term goals( for 10-15 years or more)
| Purpose | Estimated cost | Period for performance in months | Amount requested per month |
|---|---|---|---|
| Country house purchase | 1250000 | 180-200 | 6944-6250 |
| Vehicle purchase | 700000 | 100-150 | 7000-4666 |
| Child education | 800000 | 220-250 | 3636-3200 |
Definition of income and expenses
emeyny budget need to carefully evaluate all sources of income and household expenditure.
In the distribution of all budget items it is necessary to take into account the size of the family, housing conditions;wishes and goals of all family members.
When completing the income graph, you must necessarily make data in the budget:
- salary of the head of the family( husband);
- salary of the family adviser( wife);
- receiving all% of bank deposits;
- social benefits;
- pensions;
- earnings from part-time work.
When filling out the expense graphs, the following data should be entered in the budget:
| Husband's salary | 35000 | 35000 | 0 |
| Husband's work | 15000 | 18000 | +3000 |
| Wife's salary | 9000 | 9000 | 0 |
| Wife's work | 6000 | 8000 | +2000 |
| Other family income( deposit) | 5000 | 5000 | 0 |
| Total: | 70000 | 75000 | +5000 |
| Mandatory expenses: | |||
| Repayment of the loan | 10000 | 13000 | +3000 |
| Savings | 8000 | 10000 | +2000 |
| Total: | 18000 | 23000 | +5000 |
| Constant costs: | |||
| Utility bills | 8000 | 7500 | -500 |
| Cable TV | 500 | 500 | 0 |
| Internet | 500 | 500 | 0 |
| Variable costs | |||
| Purchase of food products | 20000 | 21000 | +1000 |
| Buying clothes | 2000 | 5000 | +3000 |
| Buying household chemicals | 500 | 0 | -500 |
| Recreation | 5000 | 2000 | -3000 |
| Entertainment | 2000 | 0 | -2000 |
| Total: | 38500 | 36500 | -2000 |
| Costs for children | |||
| Payment for kindergarten | 1500 | 1500 | 0 |
| Buying toys | 1000 | 1500 | +500 |
| Entertainment | 500 | 500 | 0 |
| Total expenses for children: | 3000 | 3500 | +500 |
| Husband expenses: | |||
| Buying cigarettes | 1000 | 1000 | 0 |
| Fishing gear | 1000 | 1500 | +500 |
| Total husband costs: | 2000 | 2500 | +500 |
| Wife costs: | |||
| Cosmetics | 1000 | 500 | -500 |
| Hairdressing salon | 500 | 500 | 0 |
| Total expenses of the wife: | 1500 | 1000 | -500 |
| Unexpected expenses: | 7000 | 2000 | -5000 |
| Total expenses: | 70000 | 66500 | -3500 |
| Budget Saving: | 0 | 3500 | +3500 |
| Income: | Plan | Fact | Deviation |
|---|
- taxes;
- housing and utilities;
- payment for internet and television;
- home insurance, motor transport, health;
- food products;
- clothing;
- medical care;
- pocket money for personal expenses of all family members;
- seasonal spending on gifts;
- expenses for children;
- various fees and fees in kindergartens and schools;
- entertainment.
All the proposed data for budgeting are approximate.
When building a budget, you need to independently supplement it or specify it based on your own capabilities.
Track monthly costs
Take and immediately draw up a cleara table on the incomes and expenditures of the family, which can be used constantly, no one will succeed. To ensure that the family budget visually reflects the family financial situation, it is necessary to trace where and how money is spent.
For a complete understanding, it is worthwhile to trace the income and expenditure trends for 1-2 months, each time adjusting the table for your family.
Needs and desires
It is important to draw a line between needs and desires, bring this understanding to all family members.
Before you make a thoughtless purchase of a thing you need to think about, and whether there is an exceptional need for its acquisition. Make this purchase is only if the further life is hampered by the lack of the desired object, service.
Budget for irregular incomes
The budget in case of entering into a family of irregular incomes is more difficult to implement. It is better to plan for the budget more responsibly and plan in more detail. There are three main strategies to help the planner:
- You need to calculate the average irregular income of the family over the past few years and take advantage of this figure in planning.
- To allocate from the received incomes for the certain period to each member of a family the clearly established monthly salary. From the residual funds to form a reserve or bank insurance account. In difficult periods, the account will be emptied out exactly for the established wage, but the standard of living and the budget table will remain unchanged. In profitable months it is worth remembering to replenish the reserve.
- Double budget planning. Maintain two tables. One table will be responsible for the revenue months, and the second one will be responsible for the less profitable ones. Such a tendency will teach the family to save in difficult times, and not to glamor in the period of prosperity, for the formation of some savings.
Budget table
This table is just an example of how you can manage your family budget based on the family income indicated in it.