Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Creating A Household Budget > NetSparsh - Viral Content you Love & Share

Creating A Household Budget

Creating a budget can be a very difficult task. Although we as consumers know that we need to pay our bills, buy our necessities, and put money away for savings, we don't really know how to start.

I know from personal experience how hard creating a budget can be. In the beginning stages of my road to financial freedom, I would write all my expenses down on paper and noticed that I had little and sometime nothing left over to save. I tell my clients that seeing everything on paper is only the first of many reality checks while getting their finances in order.

I think all advisors in the financial world can agree that using categories helps tremendously. Everyone will not have the same categories thus making every budget unique.

A category simply is nothing more than a grouping. Instead of listing each credit card bill separately on my budget, I will give all of my credit cards a category, for example I will list it as "debt". Some popular budgeting categories are housing, savings, utilities, donations, healthcare, miscellaneous and income to name a few.

There are many budgeting software programs out there. I suggest however, that in the beginning stages of creating a budget you should continue to do things manually. This way you are constantly viewing your money and staying in touch with your expenses.

Another very important task of a successful budget is keeping up with your expenses and all of your receipts. Now, I know this is difficult especially when buying what we think are small things but believe me it is very significant, especially for married couples. If one spouse is spending over $4.00 a day 7 days a week on a cappuccino, that one purchase is costing your household $120.00 a month. To help solve this difficult task, keep a box in a common area and commit to tossing all your daily receipts in that particular box. When you sit down to work on your budget pull out all the receipts and categorize them. I suggest you do this weekly in the beginning. The box can fill up pretty quickly, especially when two people are contributing their individual receipts.

Last but not least place your categories in a percentage list. For example look at your life in the eyes of a lender. You should spend no more than 35% of your gross income on rent or a mortgage payment including tax and insurance. If you're spending more than 35% adjust your budget according to your true picture. However the total of all your categories cannot exceed 100%. Once you tally-up your actual budgeting totals, compare them to your translated percentage dollar amounts and see how you rate. Most will find out that they have a lot of work to do.

If you find that creating and sticking to a budget is overwhelming, seek the help of a professional.

Dina D. Harbour, Financial Coach
[email protected] (or visit)

All Rights Reserved

Financial Management Experience:
Since 1986 Dina has taken an interest in the financial world. Starting her career as a Loan Clerk she quickly learned the importance of establishing good credit. After examining and improving her own financial situation she began to do research on minority lending in efforts to understand the reasons why minorities have the lowest approval rates for home loans. Her findings sparked a desire to share with others what she learned.

Since that time, she has worked as a Loan Closer for the SBA, Loan Officer for ACORN Housing, Trust Assistant for Wells Fargo Bank, and successfully won a $5000 laws suit against Equifax Credit Bureau in 2002 for reporting improper credit information. She has over 18 years experience helping people understand the importance of debt and credit. She has given many seminars over the years to Non-Profit Organizations, Libraries and private groups.

In The News:


Pete the Planner: Road to early retirement may be bumpy - USA Today
You will need some luck to ensure financial success in early retirement.

and more »


Personal finance: 15 smart things you can do with $1000 right now
A thousand dollars might be pocket change or a rounding error to multimillionaires and billionaires, but it's a meaningful sum for the rest of us. Any amount of money that we can save can be put to good use. Here are 15 examples of smart things you can ...

Unexpected Costco bargains and whether a millionaire daughter ...
My daughter earned millions at Google, but her boyfriend has student debt — should she get a prenup? This father wonders whether his wealthy, smart daughter ...

and more »

Chicago Tribune

Personal finance experts reveal their favorite money apps
Chicago Tribune
Both David Bach, nine-time New York Times best-selling author of books such as Smart Couples Finish Rich, and J Money a personal-finance blogger at Budgets Are Sexy, are fans of this app. “You won't get rich off of this, but it's a great way to dip ...


In Its 10th Year, Personal Finance App Mint Is Investing In AI, Data ...
Mint, the personal finance app owned by Intuit Inc. (NASDAQ: INTU), could be transformed by artificial intelligence and machine learning. That's according to ...

and more »

After painful personal loss, managing money looms as key challenge
Minneapolis Star Tribune
A thoughtful personal finance guide for recently widowed or divorced women is "Money Confidence: Smart Financial Moves for Newly Single Women," by Kerry Hannon. Hannon is passionate about helping people gain control of their finances and her book is ...

Personal finance seen as big gap in education - Lowell Sun Online
Lowell Sun
BOSTON -- Eric Swansburg, a business teacher at King Philip Regional High School, passed a 100-question test around his class last week to gauge students' ...

and more »


How to invest without losing money
... bonds offer generally stable returns with very limited risk, and in some cases no risk at all. The problem is that safety comes with a price. CDs, to examine one cash equivalent, constitute an agreement in which you give your money to a financial ...

Daily Nation

PERSONAL FINANCE: The debt catch up
Daily Nation
The bank calculated this regardless of her other financial obligations. Susan now realises that to comfortably afford the loan, she needs to be earning 30 per cent more than she is now. She needs her income to increase just to afford a loan that she ...


How To Stop Boring Students When Teaching Personal Finance
My mission for the past seven years has been to help students and recent graduates develop healthy money habits and build the foundation for a lifetime of financial wellness. As the co-founder of the Harvard University Personal Financial Management ...

Google News

The World is Not Enough - Calling for a More Ethical Approach to Personal Finance

At a time when the entire world's attention is focused... Read More

Saving Money - The Magic 20 Percent

Saving money is not easy and is made more difficult... Read More

UK Graduates Looking Short-Term At Their Long-Term Financial Responsibilities

With almost two thirds of university entrants from England and... Read More

Students Investing in Their Future Need to Manage Their Finances Today

With the A-level results coming out, the long wait for... Read More

Introduction to Australian Superannuation

Australians, in general, constitute some of the worst savers in... Read More

How To Free-Up 10% to 15% of Your Income

Would you be interested in freeing up 10% to 15%... Read More

Why Live Frugally

What is it about being frugal, why do it at... Read More

College Expenses: Seven Ways to Save on an Education

Many people graduate from college owing thousands of dollars in... Read More

Personal Finance ? Why You Should Compare, not Despair

Sorting out your personal finances can be a tricky and... Read More

Vesting and Your 401(k)

Do you have a 401(k) retirement account? Are you vested... Read More

Make or Break Your Retirement!

The Prudential has dubbed those who refuse to leave home... Read More

Affording a Home

Can you really afford a house? If so, how much... Read More

Dramatically Improve Your Stock Trading Success

Get Access to Realistic profitable strategies & discover the mindset... Read More

Why We Are Never Satisfied with What We Have

I have to admit, I do it too. I complain.... Read More

How to Save for A Down Payment

Saving for a Down Payment is hard work, so it's... Read More

Vacations Made Easy: Buying a Florida Investment Property

Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More

Budgeting Made Easy

Well, dang! From what I've heard and read, it looks... Read More

Debt Management ? Watch Out for Bank Fees!

During the last twenty years, banks have offered a number... Read More

More Money? My Cup Runneth Over...But Im Still Thirsty

Most of us, especially those of us who have debtor's... Read More

First Checking Account ? When is it Time?

We all know that money doesn't grow on trees, but... Read More

Whats The Truth Behind Your Finances?

Between 15 - 20% of people in our country (UK)... Read More

Reduce College Debt with Scholarships

Six Scholarship judges were sitting around an oval table. Forms... Read More

Financing Collectibles for Fun and Profit

With the advent of the internet and especially auction services... Read More

Do You Know What Tomorrow Will Bring?

I've been sharing the following idea with people for a... Read More

Ways to Save Energy and Slash Electricity Bills

1. Lighting & Light Bulbs Install low energy light... Read More