Some examples of expenses - money flowing out - are: Social security payments and transfers of any kind you receive from governmental authorities such as family allowances and pensions Income from renting out any real estate that you are the owner of Royalties you receive from others using your intellectual property (such as music you’ve written) Passive income (such as royalties from books that you’ve written) Income from your investments (such as dividends from shares) Income from side businesses or additional jobs Salaries and wages you get regularly and reliably from working ![]() ![]() Some examples of income - money flowing in - are: As there is no right and wrong in setting up such a list, feel free to adapt it to your own needs. There are also lots of free spreadsheets available online which you can adjust to your budget needs. The best way to get started is to sit down and to give yourself some time to think about all the ways you are generating income and all the things that cost you money - these are your expenses, or in other words, your assets being used up as liabilities. This is a great way of monitoring where you spend your money. Sit down and take the time to draw up a personal budget for yourself and your household. You only need a few things to start setting up and planning a budget for your individual household. Why should I be planning the finances in my household using a budget?įinances are one of the major causes of stress for many adults - creating a household budget and sticking to this plan may ease a lot of the anxiety that money may be causing you. By doing so you will also be able to figure out how much money you can potentially save and invest. This is a convenient and easy way of monitoring where you spend your money, to see where your income goes and which expenses you have. For instance, did you know that governments of nations set up national budgets structuring their spending? Just like companies that need to plan to manage their financial performance, it is important to take some time to draw up a personal budget for yourself and your household. Even if you have never heard of a household budget or even a budget before, money management plans are used much more commonly than you may think.
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