Skip to main content

How to Develop a Household Budget for the New Year

2 min read
How to Develop a Household Budget for the New Year

If you’re like many people, you probably start off the New Year with the best of intentions and set resolutions for yourself. Perhaps you want to eat healthier foods or work out more often, or you want to get a handle on your household spending. If the latter describes you, you are not alone.

According to Statistic Brain Research Institute, 34 percent of Americans who made a resolution in 2015 had one that was money-related. In fact, spending less and saving more was ranked as the third most popular resolution of 2015.

A great way to take control of your expenses is to create a household budget. Developing a budget is easier than you might think. You don’t have to be a financial expert.

Here are three simple ways to track your spending and gain control of your household budget.

  • Keep a list of all of your household income. Include all sources of the income, such as salary, wages, alimony, child support, financial income, and anything else.
  • Determine your fixed and variable monthly expenses. Expenses such as rent and mortgage payments are a fixed expense, meaning that they remain the same each month. Electricity and entertainment expenses, on the other hand, are variable expenses and change each month. When creating a budget, you’ll need to determine a monthly average, based on one year, of your variable expenses.
  • Total your monthly expenses, both fixed and variable, and then subtract that total from your total monthly income. If your income is greater than your expenses, you can apply the excess toward your financial goals, such as paying off your credit card balance or putting into savings. If your expenses are larger than your income, decide which expenses can be reduced and/or eliminated.

Want some more help in creating a household budget? A number of free budget planning tools are available online, such as the following:

  • EARN, a national nonprofit organization, offers a suite of resources to help people get on track with their finances, via its website.
  • Microsoft Office has a variety of free budgeting worksheets available for use in Microsoft Excel. Check out these budgeting templates here.
Was this article helpful?
50%
50%
View All Money Matters Articles

Swipe to see our products & get a free quote

Term Life
Term Icon

Term Life Insurance

Adults 18-70

Flexible coverage at a price that’s right for you.

Whole Life
Whole Icon

Whole Life Insurance

Adults 18-70

Keep it for life and build cash value.

Guaranteed Life
Guaranteed Icon

Guaranteed Life Insurance

Adults 50-80

Coverage for adults between 50 and 80 years old.

Accident Protection
Accident Icon

Accident Protection

Adults 18-69

Help protect loved ones without busting your budget.

Grow-Up
Grow-Up Icon

Grow-Up® Plan

Children 14 and under

Valuable protection that grows with your little one.

College Plan
College Icon

Gerber Life Insurance College Plan

Children 18 and under

Safe, secure and easy way to help pay for college.

Term Icon

Term Life Insurance

Get a free instant quote

Your quote

Get a Free Quote

Have you used tobacco? *

* Indicates required field
** Currently not available in New York

Still want to learn more, view our product page for more information.

Whole Icon

Whole Life Insurance

Get a free instant quote

Your quote

Get a Free Quote

Have you used tobacco? *

* Indicates required field
** Currently not available in New York

Still want to learn more, view our product page for more information.

Guaranteed Icon

Guaranteed Life Insurance

Get a free instant quote

Your quote

Start here. It's easy!

Let us customize a Guaranteed Life Insurance quote just for you.

* Indicates required field

Still want to learn more, view our product page for more information.

Accident Icon

Accident Protection

Get a free instant quote

Your quote

Get a Free Quote

Just enter the state you live in to get an instant quote.

* Indicates required field

Still want to learn more, view our product page for more information.

Grow-Up Icon

Grow-Up® Plan

Get a free instant quote

Your quote

Get Your Free Quote Now

See how little it costs to help protect your child

* Indicates required field

Still want to learn more, view our product page for more information.

College Icon

Gerber Life Insurance College Plan

Get a free instant quote

Your quote

Start here. It's easy!

Tell us about yourself, and we'll customize a plan just for you:

Child's Age *
Relationship to Child *
Your Age *

* Indicates required field

Still want to learn more, view our product page for more information.

Get inspired with our free e‑newsletter for parents

Get our free parenting e‑newsletter with:

– Parenting advice

– Money-saving tips

– Life insurance blogs

No thank you

By signing up, you agree to occasionally receive emails from Gerber Life. Unsubscribe at any time. View our privacy policy.

We’d like to notify you about updates, videos, new products and more.

Notifications can be turned off at any time in your browser settings.