Home Budget Spreadsheet Template
A Home budget template provides the user of it a route to decide the course to manage the household finance and help him or her to properly allocate or plan the spending over a period which is generally a month or a year, and it is one of the best-organized ways to manage our household finances.
About the Home Budget Template
The household budget template captures all the sources of income one has and also the spending. It sets up an initial budget balance and also gives a projection of the end balance, which is expected to be there after deductions of all the expenses from the incomes. Let us go about part by part.
Here we need to enter the set budget/projected balance we plan to allocate from our regular source of income. The total income is the addition of the incomes one gets from various sources. The total expenses take the addition of all the expenses which are possible in one’s lifestyle. Finally, the net gives us the difference between expenses and income. A positive net means income is more than expenses, and a negative net means expenses are more than income earned. Here we calculate the difference between projected and actual income and expense. Finally, the net arrives, which is either positive or negative.
Here we take into account all the income-related numbers. A person can have multiple sources of income. We capture all the possible sources of income and add it up as the total income. The other section can be interested in deposits earned or dividends earnedDividends EarnedDividend is that portion of profit which is distributed to the shareholders of the company as the reward for their investment in the company and its distribution amount is decided by the board of the company and thereafter approved by the shareholders of the company. from investment and additional recurring/non-recurring incomes flow.
Here in this part, all the expenses related to home/house gets captured. It takes care of the home loan, which is the EMI paid to the bank. Also, expenses like electricity, gas, water, telephone, and cable are captured here. Internet, which is an essential requirement for every home now, is also captured in this section. The repairs spent on home or maintenance amount spent over the property and the property tax paid are also shown here. Any miscellaneous amount spent against property is also captured in this section.
This section captures all the premiums and investment-related fees that we must pay towards our investment needs. It includes allocating funds towards investments from our savings and paying of retirement premiums and other required savings plans. It also means the creation of emergency funds. The complete investment needs are taken care of here, which includes retirement planning premiums to the contingency fund.
This part is majorly related to the loans or line of creditLine Of CreditA line of credit is an agreement between a customer and a bank, allowing the customer a ceiling limit of borrowing. The borrower can access any amount within the credit limit and pays interest; this provides flexibility to run a business. involved with one. The credit card today pays a significant role in everyone’s life and all the payments made towards credit taken and captured here. Any student loan or payment towards alimonyAlimonyAlimony is court-ordered financial support in divorce or separation given to a spouse who has a lower level of income or no income at all. Both husband and wife can ask for alimony. As per law, a divorced spouse has the right to live an equal quality of life as when they were married. is also noted in this section.
It is the most common expenses for every monthly budget. A set amount is allocated for the grocery and other needs like clothing, education, salon, etc. These are more or like stable and can be comfortably decided based on the consumption rate. Here we take care of all clothing and salon related expenses too.
Entertainment is a part of everyone’s life, and it has been seen an individual will spend a certain amount of his earning every month towards it. It includes movies, travel, sports, hobbies, etc. Travel plays a crucial expense in the life of every individual in the US/UK as it has been seen people like traveling a lot, and in the process of exploring places, they spent a lot of their savings over it.
Here in this section, all the needs related to children are taken care of, which includes their schooling, clothing, tuition, toys, etc. It forms a significant source of expense for all household budgets since the cost of raising a child has become very high in the US/UK.
Here all the expenses related to raising and maintaining pets are taken into consideration. The entire medical expense related to pets, too, are also captured here.
This section is specific to the amount spent against commuting requirements. Transportation plays a crucial role in our movement from place to place, and a significant amount goes for a regular commute. Be it a personal vehicle or public vehicle, a certain amount of fixed cost is always allocated monthly towards commute. On buying a car, one needs to pay monthly EMIs or the fuel cost or repairs and maintenance. Nowadays, even parking is costly; thus, every day, we shed a fair amount of fee towards parking, which has also been captured in this template. The car insurance part for private vehicles has also been shown in the template.
Any amount spent over regular subscriptions every month is captured in this part. It is prevalent today for everyone to have at least one subscription towards digital OTT movies or magazines. Thus the monthly amount spent over these subscriptions is captured here.
Personal health plays a significant part in our life. With increasing age, the cost associated with health also gets higher. Medical insurance premiums are standard in every house as every individual these days plan themselves for a secured life and protect themselves with medical insurance plans. Also, life insurance premiums are included in this part. The routine doctor fees or amount spend on medication and treatment are also captured in this section as monthly health-related expenses.
A significant chunk of budget for all households in the US/UK is generally allocated for travel. They love traveling and exploring places, and thus this should be a significant part of their expenses for the household.
All insurance-related expenses should be captured here, and this forms a mandatory part of the household expenses for future security and planning.
Here in this section, any amount spent over gifts or donations is captured. It is common in our lifestyle to attend occasions where we gift the recipient as a token of appreciation. A certain amount is always spent on this and should be a part of our monthly budget. Also, people these days donate for two reasons. One who is genuinely donating to help others and the other one is to get tax exemptionTax ExemptionTax-exempt refers to excluding an individual's or corporation's income, property or transaction from the tax liability imposed by the federal, local or state government. These exemptions either allow total relief from the taxes or provide reduced rates or charge tax on some items only. people every month to allocate a particular part of their earnings towards donations to get exempt from a higher tax bracket. Thus these scenarios are must to include in our monthly budget template.
Finally, when all the expenses are captured, any miscellaneous ones left are included here. It also includes the postage related and other petty expenses, which can be noted down monthly. It is the final section of our monthly household budget template.
How to Use This Template?
The home budget template manages the household expense and income of every family. The primary aim of using the template is to capture the entire income source available for a family and match it with all the expenses which a family has to bear monthly. It includes both recurring and non-recurring expenses. The resultant obtained or the difference obtained is compared with a set budget amount which has been set at the start of the month, and finally, we arrive at a net. The template is very useful when one needs to know the cash inflow and outflow in a family.
This article has been a guide to a home budget template. Here we provide you with a free downloadable home budget spreadsheet to decide the route to manage the household finance. Also, you can download and use this template in Google Sheets, Excel, or PDF format.
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