ᐅ How do you keep track of your household budget? Paper-based, software, or an app?
Created on: 31 Mar 2015 15:08
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starnight
Hello everyone,
I’m new here, although I’ve been reading occasionally for a while.
My husband and I are planning to buy a house within the next 1-2 years. We have equity saved, and we are currently putting aside a certain amount each month while still living comfortably. So right now, it seems quite feasible. However, we are actively planning a family at the moment... which means that eventually one income will be lost (fortunately the significantly lower one) and additional expenses will arise.
Now we would at least like to get a clear picture of our current monthly expenses. This would help us roughly estimate whether, with one income, there would still be enough left for mortgage payments, especially with an additional family member to support.
So my question is: how do you keep track of your household budget? Paper? Software? App? Online? What experiences have you had with the different methods?
Maybe your insights can save me from unnecessary trial and error.
Thanks in advance for your answers,
starnight
I’m new here, although I’ve been reading occasionally for a while.
My husband and I are planning to buy a house within the next 1-2 years. We have equity saved, and we are currently putting aside a certain amount each month while still living comfortably. So right now, it seems quite feasible. However, we are actively planning a family at the moment... which means that eventually one income will be lost (fortunately the significantly lower one) and additional expenses will arise.
Now we would at least like to get a clear picture of our current monthly expenses. This would help us roughly estimate whether, with one income, there would still be enough left for mortgage payments, especially with an additional family member to support.
So my question is: how do you keep track of your household budget? Paper? Software? App? Online? What experiences have you had with the different methods?
Maybe your insights can save me from unnecessary trial and error.
Thanks in advance for your answers,
starnight
S
starnight1 Apr 2015 11:51ypg schrieb:
A household budget book is mainly used to track the everyday euros spent over a longer period, especially for expenses that don’t have receipts or only small slips, because when the money is just in your wallet, you wonder: where did my money actually go?
For monthly or yearly fixed expenses, you don’t need a detailed budget book; a yearly overview on a sheet of paper, made in about an hour, is enough... Is this really a men’s issue, making things more complicated than they are? That’s exactly what we’re concerned with—those everyday euros. We have already gathered all the fixed costs and estimated the variable ones, then looked at how much should be left each month. Unfortunately, that amount doesn’t match what is actually left in the bank account at the end of the month. So now we want to find out where “our money actually went.”
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Bauexperte1 Apr 2015 12:19Hello,
Here a bread roll, there an ice cream, here a hairband, there a DVD, here a book, there a Filly toy, here fabric, there rather a dress...
Regards, Bauexperte
starnight schrieb:I’d like to remind again, ever since my granddaughter was born; especially since “strolling” with Aya (her grandpa) and grandma has become one of her regular routines.
That’s why we now want to figure out where “our money has gone.”
Here a bread roll, there an ice cream, here a hairband, there a DVD, here a book, there a Filly toy, here fabric, there rather a dress...
Regards, Bauexperte
I have also been keeping a household budget in Excel for years now.
To be precise, every single item is recorded (down to the individual bread roll). The main difficulty is that even after all these years, my wife still finds it a nuisance to give me the receipts for entering the data. Of course, she could do it herself, but...
I have also created a page for fixed expenses. Strangely, I find it difficult to keep this sheet up to date (for example, when insurance or similar costs change).
As a result, I am sometimes surprised when a direct debit comes through (usually for the broadcasting fee, vehicle tax, and just today the roadside assistance membership).
Well – rather alarming.
Alarming when I see how expenses have risen over recent years and we haven’t managed to permanently reduce the amount. The only approach that has really worked is using cash. You withdraw a (realistic) sum X, place it somewhere visible, and set it as a target to stick to that amount. If nothing unexpected happens, we can manage it. As soon as payments are made electronically again, it falls apart.
Interestingly, there was a recent daily feature on SWR3 that dealt exactly with this. It found that markets, as well as other providers (including a large American coffeehouse chain mentioned), are increasingly trying to switch to electronic payments because tests have shown people tend to spend more freely compared to paying with cash.
It’s also alarming to see where some prices have gone. I always find it interesting that whenever the consumer protection agency in Hamburg publishes their “Blacklist of Rip-offs,” I can often identify several of the offenders correctly.
To be precise, every single item is recorded (down to the individual bread roll). The main difficulty is that even after all these years, my wife still finds it a nuisance to give me the receipts for entering the data. Of course, she could do it herself, but...
I have also created a page for fixed expenses. Strangely, I find it difficult to keep this sheet up to date (for example, when insurance or similar costs change).
As a result, I am sometimes surprised when a direct debit comes through (usually for the broadcasting fee, vehicle tax, and just today the roadside assistance membership).
Kikolool schrieb:
I have also been using Excel for years. It’s also nice to see how things have changed over the years or how little money you used to get by on monthly ;D
Well – rather alarming.
Alarming when I see how expenses have risen over recent years and we haven’t managed to permanently reduce the amount. The only approach that has really worked is using cash. You withdraw a (realistic) sum X, place it somewhere visible, and set it as a target to stick to that amount. If nothing unexpected happens, we can manage it. As soon as payments are made electronically again, it falls apart.
Interestingly, there was a recent daily feature on SWR3 that dealt exactly with this. It found that markets, as well as other providers (including a large American coffeehouse chain mentioned), are increasingly trying to switch to electronic payments because tests have shown people tend to spend more freely compared to paying with cash.
It’s also alarming to see where some prices have gone. I always find it interesting that whenever the consumer protection agency in Hamburg publishes their “Blacklist of Rip-offs,” I can often identify several of the offenders correctly.
starnight schrieb:
That’s exactly what these daily euros are about.starnight schrieb:
I’m too lazy to write it down by hand and then add it all up.
And online is out of the question too.Try your app; in my opinion, a notebook is the fastest way to record expenses. Then, once you’re home with a coffee, you can transfer everything neatly into Excel or something similar. It doesn’t matter who does the calculations (mentally, Excel, or a good calculator).
Bauexperte schrieb:
I’m reminded again since my granddaughter was born;I don’t need a kid to spend money; I’m pretty good at it on my own.
Besides groceries, I had items that quickly get forgotten.
Like Bauexperte said, that cosmetic stuff (hair clips and the like), as well as health-related expenses (pharmacy), plants, decoration... you’d be surprised.
Edit:
f-pNo schrieb:
To be precise, every single item (down to the individual bread roll) is listed.But you can also overdo it.