International Accounting Day: Setting A Household Budget

Struggling with a household budget? Why not let International Accounting Day on November 10th inspire you to set one up?

Budgets can often times seem like a huge hurdle. There’s a million reasons to procrastinate when it comes to setting up a budget, but once you do, trust us, you’ll feel better!

Why set up a budget? The number one reason is so that you know where your money is going so you don’t overspend. If you’re spending more than what’s coming in you’ll likely end up in debt or with overdraft fees. Creating a simple budget (and sticking to it) to align with how much money you’re earning each month will not only save you money, but also help to eliminate stress.

The easiest way to set up a budget is through an online app like Mint or You Need A Budget where you can link your bank accounts, credit cards and automatic payments. These apps will automatically keep track of where the money comes in and goes out.

If that seem too complicated, you can always write out a hand-written budget. Here’s how:

• First make a list of all your bills and when they’re due.
• Then make a list of how much money you need for things like groceries, gas, and miscellaneous items.
• Write down how much money you have coming in each month.
• Deduct how much you’re spending each month from how much you make.

If you’re spending more than you’re making, you’ll need to cut down on some stuff. The best way to get an accurate idea of how much you’re spending each month is to keep track of each transaction by writing it down. Then assign a category to each transaction so you can budget more accurately.

If you’re really having trouble sticking to a budget, try putting your credit cards away or using only cash.

Remember, it’s never too late to get your finances in order! Happy International Accounting Day!