When keeping a household budget, you can set up a budget in advance so that you can look back in the middle of the month and spend money according to your budget.
I don't know how to make a budget.
The budget is based on the previous month's results.
I think there are a lot of people like that.
Even if you have gone to the trouble of keeping a household budget, it is difficult to know where to make improvements if you have not set a budget or if you have set a budget somewhat arbitrarily.
In this article, I will explain the guidelines for each expense category and how to figure out your ideal budget.
Budget Estimate
You can use the NUMBEO website to reference the consumption rate for your country or region.
If you are just starting to keep a household budget, you may want to set this ratio as a guide to start with.
Understand your ideal budget
While the aforementioned budget averages are helpful, overspending on some items compared to the average does not necessarily mean that improvements are necessary.
I want to spend money on clothing and beauty expenses.
I want to keep entertainment expenses as low as possible.
People have different values, such as
The important thing is to think carefully about the kind of life you want to lead
Figuring out your ideal budget will help you think about the kind of life you want to lead.
- Figure out your ideal budget.
- By comparing the ideal budget with the actual budget, a gap (difference) can be found.
- By considering how to fill this gap, solutions can be found.
Use the averages of expenses only as a reference, and calculate the expenses necessary for your ideal life.
How to set an ideal budget
Even though it may be difficult to suddenly achieve the ideal budget, it is possible to adjust the way you spend your money to get closer to your ideal budget.
I have created an Excel template that shows the budget transition up to the target month.
(You can download it for free.)
Instructions for Using the Budget Template
Set an ideal budget for one year and compare it to current actuals.
- Enter fixed and variable cost expense items
- Enter current actual results and ideal budget amount
Since this is set for one year from now, enter an achievable figure, not an unrealistic one.
Based on this setting, set a target amount per month. (Auto-fill)
Total amount of expenditures
The total amount of expenses from month 1 to month 12 will rise or fall by a certain percentage in line with the target spending amount.
Expenditure amount by expense category
Ratio of ideal budget✕ total amount
The target spending by expense category is set according to the ratio of the ideal budget.
Fixed expenses (especially rent) cannot be changed from one month to the next, so if you want to change them after one year, for example, please enter the values manually.
Input into household account book
If you have your current household budget book, enter your budget target amounts for the next 1 to 12 months.
Compare it to your actual spending each month to see how much difference it makes and how you can improve it, and use this information to set your budget for the next month.
If the target budget amount is higher than the current performance, the only way is to raise income.
The most efficient way to raise income is to increase the ratio of self-investment.
I have created an Excel template that allows you to prioritize your money and set up your self-investment ahead of time, just like saving ahead of time.
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[2022 version] Excel Kakeibo template(free),I recommend it to anyone who couldn't last.
Isn't it hard to get used to the format of an Excel household account book? This Excel family budget book can be printed out on ...
Free Download
Sample sheets are included in the Excel Household Budget.
Click the download button to download it for free.
