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Managing your household budget
Money trouble is the common thing in most of the middle-income group families today. It's truly a big task to handle the household expenses in balanced and precise manner. And if the budget is not maintained, then it can be a reason of financial crisis.

When it comes to creating a household budget, it takes adequate time and right decision making to control the money and save it for other essential needs so that you may not be compelled to curtail your essential expenses at the month's end. 

All you need to do is to set your priority expenses and reduce the unnecessary expenses and this can be noted down either using a notebook or digital form as per your comfortability. The manual calculation may have errors and require additional effort. Hence, for flexibility, you can take recourse of budgeting software, financial websites or applications.

Now, here is a step-by-step guide to creating your household budget so that you don't have to suffer at the month's end:

Record all sources of income

It will take a chunk of time to calculate your total earning, for instance, what you and your spouse earn. Be sure that you are jotting all your income sources including pay checks and every source of incoming money.

This initial step can help you out to manage your finances in an effective way so that your incoming amount must not be less than your outgoing amount. 

Track all your expenses

It would be a good idea if you track your expenses category wise. So, divide your expenses into some categories:

Non-adjustable expenses

You cannot ignore your fixed expenses such as your monthly bills including your mortgage, rent, electricity, water, gas, telephone or mobile, DTH, and internet bills etc. It also includes your kids' education expenses such as monthly fee, activity or event fee, bus fee or lifestyle expenses because kids grow rapidly.

Adjustable expenses

Adjustable expenses are those expenses that you cannot remove from your routine life but you can adjust in case you run out of money at the end of the month. Some of them are groceries, daily care, fun & entertainment.

Debt payments

Your debts are your responsibility and you cannot move your eyes from your debts. Usually, you are needed to pay minimum instalment(s). Such debts can be loans or interests, EMI or credit card payments, insurance premium etc.

How to cut down your unnecessary expenses?

To cut down your unnecessary expenses, you need to decide a fixed amount that how much to spend on dining out, shopping, and entertainment. Here are few tips that can be implemented to maintain your household budget:

·         Take a firm determination that you may not spend more than the decided amount on your fun and entertainment. 

·         Rather than buying prepared and instant grocery items you can simply buy raw groceries and can cook them at home. 

·         Be sure that you do not overspend on costly cosmetics and unnecessary personal care products that can spoil your budget.

Through this saving, you can build your emergency fund and can fulfil your emergency requirements such as medical expenses, traveling expenses or shopping for loved ones, marriage etc.

Thus, once you write down your income sources on one side and your expenses and debts on the other side, you may get an idea to create the right household budget. So, it all incumbents on you, what your priority expenses are or where to spend or where to cut from to sustain your perfect household budget.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of In case you have a opposing view, please click here to share the same in the comments section.
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