Household budget template is a budget sample document that shows the process, procedure and tools for managing household budget. A well drafted household budget sample can help family know the source of income and expenditure and improve their financial well-being.
Household Budget Overview
Household budget need to understand the financial position of family. During the process of household budgeting, it is important to know the financial position of the family. You need to understand the the family resources available by examining net worth and household cash flow. Net worth is a household’s balance sheet, calculated by adding up all assets under that household’s control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the household goals can be accomplished.
Household budget need to have an adequate protection and flexibility. In the process of family budgeting, it is crucial to add flexibility and estimate the unforeseen risks. These risks can be divided into liability, property, death, disability, health and long term care. Some of these risks may be self-insurable, while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance.
Household Budget Template
There is a free budget template you can download for reference, however, you may want to create your own personal sample household budget template based on your own budget requirements and needs using commonly available software such as Excel. During the process of development, it is important to consider the household budget format, household budget form and household budget layout.
The first key part in household budget template is the budget background information. In the section, you may list the details of budgeting information. For example, the budget goals:___; The budget date:___; The budget policy:__; Family financial position:__.
The second key part in household budget sample is the income . In the section, you need to list all source of income and categories. For example, the Income Category A:___; The Income Category B:___; The projected Income:___; The actual income:___.
The last key part in household budget example is the expense source. In the section, you need to list all the source of expenditures and categories such as the house, transportation, food, entertainment etc. For example, The House mortgage expenditure:___; The Food Expenditure:__; The Estimate Cost:__, The actual cost:__; The variance:__.