Without a home budget it becomes almost impossible to keep a tab on domestic expenditure and even before you realize, total expenses might shoot up due to some expenditure that was not a priority while an unavoidable expense remains unattended to causing great embarrassment and, at times, considerable problems.
I had experienced a very piquant situation when I simply overlooked paying my child’s kindergarten fees while spending lavishing on a candlelit dinner that was entirely avoidable. Finally when I realized this oversight as kindergarten authorities sent a reminder, I was hard pressed to arrange for necessary funds. From that day onwards I resolved to maintain a home budget and, as I feel most comfortable using Excel, I prefer a home budget worksheets that works best on Excel.
If one feels a home budget will only deal with day-to-day expenditure, it might perhaps not be a proper evaluation of the entire concept. A home budget does not only keep a tab on daily domestic expenses and ensure they are neatly categorized into easily identifiable slots, but also it acts as a Family Budget Planner.
A home budget take note of all types of expenses, right from daily expenses for domestic provisions to monthly installments to be paid for mortgages. It also incorporates expenses that are typical for a specific month in which birthdays and anniversaries occur. This allows a householder or a homemaker to have a clear idea about the total outflow of cash that will take place during a particular month. Armed with those crucial details, a householder might curtail or, at least, strictly monitor, expenses on other heads especially during those months where cash outflows are bound to be on the higher side. Such continuous monitoring allows somewhat smoothening of cash outflows from a household thus providing some breathing space for an average householder.
So it is quite obvious if household expenses are properly managed through a home budget, it is very much possible to generate a steady stream of savings month after month without actually resorting to any sort of austerity measures. You can still have your favorite dinner at your favorite restaurant every fortnight and also manage to save a decent amount every month. The trick lies in identifying all genuinely unnecessary expenses (every household has such latent expenses as it were) that can actually be done away with without causing any hardship or sacrifice.
Once such stealthy, if we may say so, expenses are determined by strictly following the home budget, you will find how much surplus you have at hand at the end of a month even after taking care of all your requirements and even after catering to a couple of your fancies.
A home budget also allows you to save in an organized manner if you have plans to buy that exclusive piece of furniture or that fancy home theater that your best friend has just bought by forcing you to keep aside some amount for a few months till the required amount is accumulated. Though it is a slightly long drawn out procedure as you will have to wait for a few more months than you would ideally like, it actually allows you to avoid another loan and the burden of another accompanying monthly installment.