6 Tips to Manage Your Household Budget!

To manage your household budget is an essential part of managing your overall budget which includes saving up and paying your debts. It may take you a bit of time to properly budget your finances and to understand the difference between what you need (essentials) and what you want (nonessentials) but eventually you will be able to and get your budget under control. 

1- Record your income and expenses

Record every expense you incur for at least three months in a row as accurately as possible. Keeping track for several months will let you find out whether your expenses exceed your income in which case you will need to make some budget cuts.

2. Classify your expenses

You must understand the difference between essentials and luxuries, for example food, drink, and medication are basics (necessary), but outings and shopping can be reduced because they are luxuries. Same goes for monthly bills which can be controlled to a certain extent.

“Reducing expenses will make a big difference especially if this item is not necessary

3- Reduce your expenses

Reducing expenses will make a big difference especially if the item in question is not necessary. Remember, money doesn’t grow on trees.

More tips here, how to deal with money and budget correctly!

4- Set saving goals

Whatever you manage to save up from your household budget should go into your savings account or emergency funds. over time these amounts no matter how small they are will help you build your financial security. 

This will help during emergencies and when you have extra expenses for whatever reason. 

Each month go over your expenses and learn from your mistakes and then adjust your budget accordingly. As the saying goes a penny saved is a penny earned.

5- Plan your meals

Build up your pantry and stock up on essentials such as dried and canned goods. This can save you money on the long run especially if you buy in bulk during offers and discounts. You can even get together with your extended family members, friends, or neighbors and buy in larger quantities (to save up more) and divide the goods and expenses on all of you. 

Having meat, chicken, or fish every day is not necessary. Two or three times a week are more than enough in fact. It all depends on your budget and your expenses. 

6- Pay in installments instead of cash

Sometimes you need to buy an essential item such as a fridge or washing machine but you don’t have enough cash to pay the full amount or you don’t want to destroy your budget for the month. In this case using your credit card is a better option.

Compare credit cards offered by different banks on Faydety from the comfort of your home.