Monthly Household Budget Template

One can better define a monthly household budget template as a spreadsheet or a document that outlines details about the monthly household income and expenses of the individual for a particular period.

The monthly household budget spreadsheet generally includes all the transactions that the person and his family members expect to do during the particular month under consideration, like income earned by all the family members during the month. The allocation of those funds under various categories like general household expenses, transportation expenses, utility expenses, insurance expenses, obligations, savings, etc.

The sample template of the monthly household budget in Excel, which the person can use for tracking day to day requirements of all the family members during a month is explained in details below.

Everyone serious about their own and their family's financial future prepares the monthly household budget well in advance at the beginning of the month so that they can have an idea about their sources of income during the month and the areas where they can allocate the income.

With the help of the monthly household budget, they can get an idea about their actual expenditure and income at the end of the month, along with the variance between the budgeted expenditures and income.

Thus, the monthly home budget template reflects the simple day-to-day requirements of all the family members and helps track the budget as and when required.

Excel monthly household budget template comprises all the details related to the income and expenses of the person for a month under consideration. In addition, the budget template of a person also provides their necessary information like name, month to which the budget belongs, family members, etc. These details are filled in the excel monthly household budget template so that the person in the future can differentiate the budget prepared from the past and future period's budgets.

The main details that are generally found in any of the monthly household budget templates include the following:

#1 - Income:

This area will consist of the income that the person expects to earn from all sources in the month. Along with expected figures in monthly household budget template free, the actual figures are also entered. A person can identify the variance between budgeted and actual figures with these figures.

#2 - Expenses:

The person's expenses are further categorized into significant expenses to analyze the budget. The general categories of in monthly household budget template free include daily household expenses, utility expenses, transportation, miscellaneous costs, and the amount allocated against the savings.

#3 - Balance:

It will show the balance remaining with the person after deducting all the expenses, obligations, and savings from the income.

This kind of budget making process should be a part of every household because it helps to keep track of all the possible source and amount of cash inflow and outflow for the family and plan expenditure and life in general according to it.

There are some steps that can be taken to make create this simple monthly household budget template, which are as follows:

• This can be created using excel or there are many online templates available that is offered by various sites. The earning members of a family may use such templates for recording their income and expenditure.
• After that comes the step where they need to make a list of the various sources of income and expenditure that has to be recorded in the template. This will give them an idea about the cash flow.
• Next, there comes the need to analyse the income and expenses. This will help in identifying whether the income sources are enough, stable and dependable for long term usage.
• After this, the avenues for expenditure on monthly basis should be analysed, which will help in identifying if they are more than required, if there is any wastage or unnecessary expenses involved and if there is a possibility of reducing them to some extent.
• Thus, now the income and expenses are already identified. Now it is important to total them and find out what is the amount left in hand as extra that can be used for other purposes like investment, emergency fund, general savings for any purchase or entertainment, etc.
• The above steps will lead to a proper plan for creating a budget which is necessary so that members will not indulge in over-spending or wastage of financial resources and keep money aside for other important matters.

It is very simple and easy to create a template that will help to track and keep record of money flowing in and out of a household. This will not only ensure financial stability and security but also mental peace within the family.

Let us take a suitable example to understand the concept of simple monthly household budget template.

We assume the household of John, who is married with 2 kids, who goes to school. John is an employee of a private company that offers him good salary along with medical benefits. His wife has her own business which also brings substantial income to the household.

But recently they have noticed that at the end of every month, there is not much money left for savings or meeting sudden expenses. Thus, they decided to create a budget of the household, using an online template that will help them track any unnecessary expense as well as streamline the funds for proper use.

After creating the template, John and his wife could identify a number of areas where the expenses were beyond what they could afford. This led to an imbalance in the household funds.

From the above example it is possible to understand that such templates are extremely useful for financial planning of a household and maintaining financial stability.

Finally, let us understand and analyse the various ways in which the template is helpful in any household so that they can make their financial planning and budget for the entire month and stay confident.

• The monthly home budget template provided above can be used with an easy click and download by the person. Once downloaded, the person can enter their details like name, the number of family members included in the budget, the month, the year to which the budget belongs, etc.
• After filling up the required information, the person can fill in all the details of the expenses they expect to incur in the month, along with the budgeted amount against those expenses. In addition, the information in the given template includes the person's income from all the sources during the month and the expenses for that period.
• The general household expenses, as given in the template, include expenses on daily household things, transportation costs, utility expenses, debt obligations, etc. Apart from expenses, a person keeps some money as savings from income.
• These expenses and savings are deducted from the total income to get the balance left at the month-end. This balance will be calculated automatically once the person using the pre-applied formulas passes all the income, expenses, and savings entries.
• The variance among each item in the template will also calculate automatically along with the balance figure. Also, the total of the income, expenses and balances will be shown automatically at the top of the template to give a brief picture of the household's budget.

This article has been a guide to what is Monthly Household Budget Template. We explain how to make it along with example, elements & how to use it. Also, you can download and use this template in Excel, Google Sheets, or PDF format.

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