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Introducing good habits into home budget management can really help

We all know very well that spending money is easier that saving. Moreover, when we spend, whether in cash or by card, we rarely keep track of how much, where and why we spent. Later we realise that we haven’t made any savings that particular month or that we went over the limit on the credit card.

A home budget calculation

We know that this is not a pattern to follow if we want to get rid of debt or grow savings but, at the same time, we tend to ignore the problem. This is general human nature. The truth is if you want better control over your money you need to get into habits that will help you to do so. In reality, it will give you more freedom and helps you to regain control over that part of your life. By knowing how much you spend monthly you can plan bigger expenditure and finally buy that dream piece of furniture, change car for newer one, go on holidays of your life or invest for the future.

Where to start?

Grab a piece of paper and a pen and start writing things down. First, you need to know how much you get and how much you spend every month – be honest.

Put earnings at the top of the page and below add different kinds of outgoings – one in each row, so the calculation will be easier. They can include the cost of your house (mortgage or rent), food, transport, bills and other things that you pay monthly.

In another column keep track of extra spending and earnings that don’t happen every month, like extra projects, days away, extra clothes etc. If  your regular spending doesn’t exceed your earnings that’s a good start. By separating the additional costs you will see how much you really spend on things that are not necessary.

Following these simple steps will give you a clearer picture of what you have, what you could have and where you can improve. Even if you don’t have financial problems, big or small, it’s good to keep an eye on monthly budget as it helps you to plan and also talk about money openly.

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