ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Saving Money: How To Set Up A Household Budget to Save Money?

Updated on June 22, 2011

Saving money is as important as earning money for your family, and setting up a household budget is the most important way to manage your family and personal finances. With proper financial planning, you can start saving money in a matter of months. Below are a few steps to set up a household budget to save money:

Step 1: Calculate Your Household Expenses

Take a piece of paper and write down your household expenses each month. Do this for at least two to three months to have an idea of how much your family is spending on a monthly basis. Write down each and every part of your household expenses including mortgage loan/personal finance/auto loan installments, utility payments including water and electricity bills, healthcare expenses, grocery bills, school/college fees, gas bills, entertainment/travel bills, etc.

Step 2: Calculate Your Household Income

On another piece of paper, write down your fixed household income. This should be the monthly income of each and every earning member of your family. Do not calculate income accrued from seasonal or temporary jobs.

Setting up a household budget is not very tough. If you feel it is taking a lot of your time, then you can download some free home budget softwares or household budget worksheets from the Internet.
Setting up a household budget is not very tough. If you feel it is taking a lot of your time, then you can download some free home budget softwares or household budget worksheets from the Internet. | Source

Step 3: Compare Household Income With Expenses

After making a list of income and expenses items, make a grand total and compare. If the net monthly income is more than the net expenses, then you are lucky as you have extra money in your hand. Start saving the extra money in your savings account, open a fixed deposit, or buy mutual funds. If the net monthly expenses are more than net monthly income, then you need to cut down on family expenses.

Step 4: Eliminate Unnecessary Spending From Your Household Budget

If you are reviewing your household budget every month, you will definitely find out a few items where you are spending more than required. Some non-essential items you can cut down from your family budget are gifts, entertainment, long drives every weekend, drinking and dining out, etc. You can actually save this money to secure your financial future.

Step 5: Increase Your Household Income To Save Money

There are several ways to increase your household income and save money and they are:

1. Writing articles on revenue sharing portals to earn extra money.

2. Part-time office jobs for saving money.

3. Saving money on utility bills like electricity and water.

4. Walking to the office saving money on fuel.

5. Living frugally to save money.

Reducing costs, living frugally, and increasing income with a second job are the best ways to start saving money. You just need to understand where you are heading with your family finances and financial planning, but you will only be able to learn all this once you set up a household budget.

Comments

    0 of 8192 characters used
    Post Comment

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      Yes you are right ocbill. It is not good for anyone to spend without a budget. Increasing income from online resources is a very good option.

    • ocbill profile image

      ocbill 

      7 years ago from hopefully somewhere peaceful and nice

      I just ran into someone who said I like to spend without a budget. This made me think, of #5, well you've got increase your income. Make money online.

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      Thank you so much avorodisa. I found that you are very fast and covering loads of topics since joining hubpages.

    • avorodisa profile image

      Anna Sidorova 

      7 years ago from Russia

      Thanx for the practical and clever tips on how to save money!

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      Yes Ruchira, making a household budget and sticking to it definitely helps. Thanks for the comment related to recession.

    • Ruchira profile image

      Ruchira 

      7 years ago from United States

      having a budget in this recession times...definitely helps!! Esp. since now thanks to the credit card we do not realize how much we have spent...until the card bill comes home at the end of the month :(

      Good hub esp during these times :)

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      Thank you so much areinholz. Thanks for the review.

    • areinholz profile image

      areinholz 

      7 years ago

      Good hub - nice tips on saving money.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)