Household Budget Calculator Basics
You can use this simple household budget calculator as a tool to determine if you are spending more than you earn. Most consumers “know” whether they are spending more than the earn, particularly as the end of the month approaches. But, “knowing” does not necessarily mean “understanding” where all the money goes and how best to adjust spending to make things better. Using this budget calculator is designed to give you a clear view of your monthly finances and help you find places to change your budget to make the most of your income.
How To Use This Budget Calculator
The budget calculator shows the percentage each expense category relative to total available income. The higher the percentage of the expense category, the higher the importance you assign to that category of spending. Generally your spending can be classified as either non-discretionary (housing/rent) and discretionary (entertainment). If you have a goal to save for the down payment for a home, the calculator will show you where you can consider making adjustments to your expenses so that you can reach that goal.
At the end, this household budget calculator is just a tool that reflects your current spending priorities. But, it is not permanent, and is subject to adjustments as your life and priorities change.
Whether you are a household of one (personal) or of many (family), to create a working budget using this calculator is easy. You simply provide the values to project your total income and estimated household expenses. As you enter the values, the budget calculator automaticlly does the calculations and provides a category and summary breakdown of the results. That’s all there is to it. The more accurate the values, the more accurate will be your household budget. Review at the end of the first month versus your actual spending and make adjustments. Continue refining your budget as your personal life changes.