While a household may have a rough idea of their expenditure, it is important to keep records to help the household plan and manage their income and expenditure to avoid overspending (financial issues). It can be done weekly, monthly or yearly.
Budget template Here is an extract from the budget template on expenditure:
Household Budget of Clair and Larry Planned Expenditure
Fixed Mortgage (i) Subtotal
Irregular Groceries
(ii) Subtotal
Discretionary Holiday
(iii) Subtotal Total Expenditure (i) + (ii) + (iii) Example
Clair and Larry recently bought a new home and their mortgage payment is €100 every week.
Clair does the shopping once a week. In Week 1 it was €50, in Week 2 it was €50, in Week 3 it was €40 and in Week 4 it was €10. They have decided to go on a honeymoon to South Africa.
The deposit of €1,000 is due in Week 2. Solution
Household Budget of Clair and Larry Planned Expenditure
Fixed Mortgage (i) Subtotal
Irregular Groceries
(ii) Subtotal
Discretionary Holiday
(iii) Subtotal Total Expenditure (i) + (ii) + (iii)
100 100
50 50
100 100
50 50
1,000 1,000
150 1,150 140
100 100
40 40
100 100
10 10
400 400
150 150
1,000 1,000
110 1,550 Total Expenditure = Fixed Expenditure (i) + Irregular Expenditure (ii) + Discretionary Expenditure (iii) 20