Correct family budget. Family income and expenses Example of my family income and expenses

The student must know: the essence of the family budget, the rules for maintaining a family budget, the structure of family income and expenses, family budget planning, the essence of insurance, compulsory and voluntary insurance.

Key words and terms: family budget; family income and expenses; family budget deficit; sources of family budget accumulation; family balance; insurance; personal insurance; medical insurance; insurance risks.

Sources of family income, main types of family expenses

The essence of the family budget

Family budget- these are the income and expenses of the family for a certain period of time (month, year). A family budget allows you to control money in the family and distribute it correctly.

The importance of the family budget both for the family (as the first unit of society) and for the state is that organizing the accounting of monetary income and expenses in the family allows you to control and distribute financial resources.

For the existence of a family budget it is formally necessary:

• 1) the presence of the family itself;
• 2) the presence of some form of accounting for income and expenses.

Budgeting strategies in different families can greatly

vary. In some families it is customary to keep track of expenses, while in others it is not. In our country, according to statistics, the majority of the population does not keep any records.

Large purchases (household, audio and video equipment) in the majority of Russian families are planned in advance (69%), spontaneous purchases are made by 14%. The facts are clear: in approximately every seventh Russian family, it is not customary to plan large expenses in advance. Interestingly, this indicator does not depend on the level of family income: families with both low and high incomes are equally prone to spontaneous large expenses (Fig. 2.1).

Any family receives income from various sources and spends it on consumer expenses. The income received is spent on meeting the needs of people - on those benefits that are necessary to ensure the livelihoods of people and the existence of their families. As a result, income turns into expenses.

Income- this is money or material benefits received by individuals or legal entities when they perform any

Rice. 2.1.

actions related to receiving remuneration or profit for the efficiency of business activities (Fig. 2.2). Where do Russians get funds for large purchases? More often:

• saving money - 30%,
• buy goods on credit - 26%,
• spend on the purchase the amount they currently have - 14%,
• other options (get a loan from a bank, borrow from friends, etc.) are rare.

Rice. 2.2.

Family expenses- these are the expenses (costs) for the consumption of material or spiritual benefits of a person.

Russians regularly keep records and calculate expenses in less than half of Russian families (43% - this is accepted, 50% - not accepted). And this does not depend on the level of family income (Fig. 2.3).

Rice. 2.3.

In most cases, Russians believe that maintaining a family budget and regularly tracking expenses helps to significantly save money (54% agree with this). But nevertheless, even among those who agree with this, 28% do not keep track of expenses (Figure 2.4). Why? Either there is no real need, or there is no corresponding financial culture.

Rice. 2.4.

Statistics show that those who keep records of family finances, compared to those who do not, have the opportunity to reduce family expenses and increase income.

Most Russians begin to maintain a family budget and record their expenses out of necessity, due to some circumstances, and not because of a conscious approach to financial planning. It is generally not customary for half of the population to take into account their expenses. This indicates a lack of financial literacy and financial planning skills among the majority of the population.

Which the family receives from other individuals or organizations.

Sources of family income- this is what or where the family receives money from.

Sources of family income	Family income
	Wage
2. Entrepreneurial activity
3. Ownership of natural resources
4. Ownership of property	Rent
5. Available funds
6. Government and other payments	If family property cannot be used by other people for their own needs, then it does not generate income. For example, a family has a car. If it is used only for family trips, it does not generate income. But if you use a car for paid transportation of other people, then such services can bring additional income to the family. Free funds. People don't always spend all their income. The deferred, saved part of it is free cash. The family can also receive income from them: Interest on money deposited in the bank; Payment for money loaned; Remuneration for purchased securities from enterprises or the state. Government and other payments. Many families receive income from the state in the form of pensions, child benefits, unemployment and disability benefits, various subsidies and other payments. Some families increase their income through private charitable donations. All families strive to ensure that their income is as high as possible. But they solve this problem in different ways. Main areas of family expenses. Family expenses – This is spending money on family needs. Types of expenses Constant Variables Fixed expenses – These are costs that always exist. These include: expenses for food, payment for housing and communal services, telephone services, payment for classes in sports clubs, music schools, and others. The family cannot do without these expenses. Reducing fixed expenses is difficult, but families are often forced to do so. By saving electricity, water, and gas, your utility bills will be lower. Moderation in food will reduce food costs; walking will reduce travel costs. Variable expenses – These are costs that do not always exist. These include: expenses for various purchases, visits to the cinema, concerts, trips to visit, on vacation and others. Variable expenses depend entirely on family income. Every family should plan its variable expenses in advance. This will allow her to think about her needs and eliminate those unnecessary things that she can do without. Family budget. All consumers are limited in their spending by their available income, so they have to choose from the entire variety of goods and services that which brings the greatest satisfaction or maximum benefit. The number and value of things that each consumer can purchase depend on the amount of income and how wisely they use these funds. Often families are faced with the problem of choosing what to buy first, since the income received is not always sufficient to satisfy all the needs of the family at once. In addition, money spent on purchasing one good limits the ability to buy something else. In order to plan possible income and expenses, a family budget is drawn up. Family budget - This is the planned amount of family income and expenses for a certain period of time (usually a month). Types of budget. Income = Expenses Income Expenses Income Expenses Balanced budget Budget deficit Budget surplus (equilibrium) (insufficient) (excessive) The most unfavorable state of the budget is when it is in deficit. In this case, income does not cover family expenses. Typically, families strive to balance their budget, that is, to bring expenses into line with their income. Rational housekeeping. Rational housekeeping means rational housekeeping. The limited income of the family budget forces people choose what you want to buy now, what - a little later, and what purchases should be abandoned altogether. The most difficult thing is to manage a household rationally with a deficit budget. Each family decides differently how to avoid a deficit budget. The best way to solve this problem is to increase family income. If all possibilities for increasing family income have been exhausted, then the second way to reduce the budget deficit is to reduce expenses. The third option to balance your budget is to borrow money. For example, purchasing a product on credit and paying for it later. But at the same time, you need to be confident in your income, since you will have to regularly repay the loan amount and interest in installments. Every family strives to make at least small savings. By saving money for future use, planning your purchases, and comparing items sold in different stores, you can buy more good quality items with the same amount of income. This is the goal of rational housekeeping. Practical tasks. Income Expenses 1. Sale of milk - 1800 rubles. 1. Buying bread - 1000 rubles. 2. Sale of sour cream - 800 rubles. 3. Buying cheese - 600 rubles. 4. Buying sweets - 400 rubles. 5. Photo gun - 4000 rubles. Total: 3800 rub. Total: 7800 rub. Matroskin the cat has one saying: "Money, children, love counting." The cat always keeps track. If low income - Costs must be cut! What type of budget did Matroskin make? ( in short supply) What does Matroskin the cat need to do to equalize his income with his expenses? ( reduce costs) How to cut expenses for Matroskin the cat? - Don't buy a gun yet. Family budget of the cat Matroskin. Income Expenses 1. Sale of milk - 1800 rubles. 1. Buying bread - 1000 rubles. 2. Sale of sour cream - 800 rubles. 2. Buying sausage - 1800 rubles. 3. Sale of potatoes - 1200 rubles. 3. Buying cheese - 600 rubles. 4. Buying sweets - 400 rubles. Total: 3800 rub. Total: 3800 rub. Balance equal to zero I will praise myself How to call such a budget? Tell me the answer ( balanced) It’s bad if there’s a shortage It will be better surplus! Family budget of the cat Matroskin. Income Expenses 1. Sale of milk - 1800 rubles. 1. Buying bread - 1000 rubles. 2. Sale of sour cream - 800 rubles. 2. Buying sausage - 1800 rubles. 3. Sale of potatoes - 1200 rubles. 3. Buying sweets - 400 rubles. Total: 3800 rub. Total: 3200 rub. Pechkin asks: “Help, I don’t want to get into debt.” The family budget of postman Pechkin. Income Expenses 1. Salary - 6500 rubles. 1. Food - 5000 rub. 2. Fee for the note in the newspaper - 500 rubles. 2. New hat - 1000 rub. 3. Gift from parents Uncle Fyodor - 500 rubles. 3. Bicycle - 4500 rub. Total: 7500 rub. Total: 10,500 rub. Don't ask us for money You want to live beyond your means. You don't spend on lunch Postman Pechkin did not agree with the advice given to him and decided to save money for a bicycle. How many months will he save money to buy a bicycle if there are no more notes in the newspaper and gifts from Uncle Fyodor’s parents? 1 month: Income = salary + fee + gift = 7500 rub. Expenses = groceries + hat = 6,000 rubles. Savings = 7500 rub. – 6000 rub. = 1500 rub. 2nd month: Income = salary = 6500 rub. 3 month: Income = salary = 6500 rub. Expenses = products = 5000 rub. Savings = 6500 rub. –5000 rub. = 1500 rub. To save up money for the postman Pechkin to buy a bicycle, he will need 3 months. Assignments for independent work. Exercise 1. Insert the missing word. 1. People in rare professions, as well as those associated with risk, receive _________________ salary. 2. An entrepreneur does not always receive __________________ , since there is a high degree of risk in his activities. 3. A plot of land allows a family to receive income in the form of _______________ only when at least part of what is grown is sold. 4. Having a house, you can rent it out _________________ and receive income in the form __________________ . 5. Free funds can be deposited in the bank and received ____________ . 6. Families often receive ________________________________ in the form of pensions, benefits, and other payments. Task 2. Solve problems and answer questions. The Lisov family consists of three members: mother Fox and two sisters Lisichka. Papa Fox died in a fight with dogs. Lisa receives a salary of 8,000 rubles. The state pays the sisters a monthly pension for their deceased father of 4,600 rubles and another child benefit of 300 rubles. The family also rents out their grandmother’s apartment, receiving an income of 5,000 rubles. What is the income of the Lisov family? Forest fashionista Elizaveta Patrikeevna, working as a secretary for Lev Lvovitch Lvov, received a salary and a bonus. She paid 2,500 rubles for the apartment, telephone and utilities, spent 3,000 rubles on food, bought herself new clothes: a suit for 1,200 rubles, shoes for 900 rubles and cosmetics for 500 rubles. Unexpectedly, Lisichkin’s relative came to visit her, and Elizaveta Patrikeevna bought a cake for 100 rubles. She decided to put the remaining 3,500 rubles in the bank. Determine: a) fixed costs;

In other words, if the property owned by a family cannot be used by other people for their needs, nothing can be earned from it. For example, while a car is used for travel only by family members, it does not generate income. Driving this car itself does not generate income.

But if someone asked to take goods brought for sale to the local clothing market, then he will pay for the service. Moreover, the money received will be payment for two factors of production at once: for labor (in the form of driving a car) and for capital (in the form of the car itself). Consequently, income is generated only by property that can be used to produce goods that people need (in our example, such a good was the service of delivering bags of goods to the market). It is this use that is paid for by the buyers of the goods produced. This means that any income represents a payment for the services of one or another factor of production.

Family income- This is money that family members receive from outsiders or organizations and can use to pay their own expenses.

The classification of all types of family income depending on which factor of production brings them in is given in Table. 11-1.

Table 11-1

In most countries of the world, wages are the predominant source of family income. But many families, along with wages, also receive income from the ownership of other factors of production.

Things have been completely different for a long time in our country. Here, the command system destroyed private ownership of capital and land after 1917, and the exercise of entrepreneurial abilities in general was prohibited by a special article of the Criminal Code, which punished “private entrepreneurial activity” with a long term of imprisonment.

The only factor of production that people could own and sell for income was labor. It is not surprising, therefore, that Russia entered the 90s with a very poor population. On the threshold of the last decade of the 20th century. 21% of citizens owned property worth from 5 to 10 thousand rubles. (that’s how much a passenger car like a Zhiguli or Moskvich or a garden house on a plot of 6 acres cost at that time). Only 14% of Russians owned property that was large in value. And 65% of citizens respectively owned property, the value of which did not exceed 25 average monthly salaries (a total of approximately 3,250 rubles in prices of that time), i.e. they lived extremely meagerly.

The salvation for Russians in those days was personal subsidiary farming, that is, the production of agricultural products by personal labor on land in villages or garden partnerships to satisfy their own needs for food and other needs. This situation had not changed significantly by the beginning of the 21st century: according to state statistics, in the 90s of the last century, the share of household products in the total agricultural production in the country more than doubled and exceeded 57%.

At the same time, private farms of citizens accounted for 91% of potatoes, 80% of vegetables, 57% of meat produced in the country. Such intensive development of personal subsidiary plots in a country that has already gone through, it would seem, the stage of urbanization - mass relocation of the population to cities, is determined by the fact that the monetary incomes of many families are extremely low and people survive on natural income - food products received in personal subsidiary plots economy and either consumed by the family itself, or partially sold in markets to obtain money for the purchase of industrial goods and payment of utilities (electricity, heat, etc.)

After the beginning of economic and legislative reforms in the 90s, the situation, although very slowly, is changing. The law allowed citizens to own factors of production under private ownership. True, even today it is difficult to talk about full-fledged private ownership of land (in terms of agricultural land) and other natural resources. And yet, the revival of private ownership of production factors has already begun to change the structure of Russian family incomes. This change is clearly visible in Fig. 11-1.

Rice. 11-1. Structure of income of Russian families in 1982 and 2005 (V %)

What happened in the country at the end of the 20th - beginning of the 21st century? What does a snapshot of the contents of Russians' family wallets indicate? First of all, the country is experiencing two powerful processes developing in parallel.

The first process is the formation of new economic mechanisms and the emergence of new sources of income for citizens. This is precisely what is associated with the increase in the share of income from entrepreneurship and property ownership from 1% in 1982 to 22% in 2005.

The second process is Russia’s gradual recovery from the economic crisis, which manifested itself in the first half of the 90s. primarily due to the decline in production. This crisis had a huge impact on the formation of family income due to:

1. extremely slow (compared to inflation and the income of entrepreneurs, retailers and bankers) growth in wages of employees at enterprises in most sectors of the manufacturing sector of the economy. These enterprises experienced great difficulties in selling their products; they had no income and, accordingly, no opportunity to increase the wages of their workers;
2. an increase in the number of unemployed people who received only unemployment benefits, which were less than wages.

The economic recovery that began in the country in 1999-2000 quickly led to an increase in the share of wages in household income from the crisis level of 46.6%, which occurred, say, in 1994, to 65% in 2005. And If this trend towards economic growth continues, then there should be no further sharp decline in the wage share of income.

Information on family expenses can also provide a lot of interesting information for assessing the state of affairs in the economy. Discovered this in the 19th century. German statistician Ernst Engel. He explored and described the relationship, which became known as Engel’s law in his honor.

Engel's law: with an increase in family income, the share of expenses for food decreases, the share of expenses for clothing, housing and utilities changes little, and the share of expenses for meeting cultural and other needs increases noticeably.

The logic of change described by this law is generated by the fact that various life goods have unequal utility for people and therefore the needs for them are significantly differentiated in scale.

The fastest way for humanity to meet its food needs (as one economist joked: “Our food needs are always limited by the walls of our stomach”). Therefore, as income increases, the share of food costs begins to decline first. Then comes the turn of expenses for clothing, although here the process of “saturation” is slower. The reason is simple: needs of this kind are constantly spurred on by such a powerful tool as fashion.

The most difficult thing for humanity is to satisfy its needs in the field of housing. When analyzing the data in table. 11-2 it is easy to see that the lower the cost of food and clothing in a country, the higher the share of costs for housing. And the point is not that in these countries housing is more expensive, but that the quality of housing and the provision of it are higher.

Table 11-2

Table 11-3

In addition, housing - along with cars - is a “prestige product”. Therefore, people strive to have comfortable housing not only for the sake of convenience, but also to emphasize their social status.

Ernst Engel argued (and today this is generally accepted) that since personal consumption in all countries develops according to similar models, then an analysis of the structure of family expenses allows us to compare:

1. levels of well-being of different groups of the population of one country (taking as a criterion the share of family expenses on food);
2. well-being of citizens of different countries.

In Russia, as is easy to see, the structure of expenses (excluding “gray income” that people receive in cash and which is difficult for government statistics to estimate) is significantly different than in the developed countries of the world.

Based on Engel's law, Japan and the United States are leaders in economic development and the level of well-being of their citizens. Russia (with its 41.7% of food expenses) is in last place among the countries shown in the table. Such high levels of food expenditure in the USA, Japan and most Western European countries existed 70-100 years ago. Accordingly, Russia is the same amount behind these countries in ensuring the well-being of its citizens.

An analysis of family budgets will be incomplete without taking into account the impact on the family economy of such a powerful process as inflation.

A family is a state in miniature: it has a head, an adviser, “ subsidized population", income and expense items. Planning, distribution and sequestration ( familiar words?) family budget is an important task. How to save and save without going on a starvation diet? — Create a table for recording funds received by the family and review the structure of payments.

• Money– one of the greatest instruments created by man. They can buy freedom, experience, entertainment and everything that makes life more comfortable. But they can be squandered, wasted in unknown places and senselessly squandered.

Legendary American actor of the early twentieth century Will Rogers said:

“Too many people spend money on things they don’t need to impress people they don’t like.”

Has your income been less than your expenses over the past few months? Yes? Then you are not alone, but in a big company. The problem is that this is not a very good company. Debts, loans, penalties and late payments are growing like a snowball... it's time to jump out of the sinking boat!

Why do you need to keep a family budget?

“Money is just a tool. They will take you where you want, but will not replace you as a driver,” Russian-born writer who emigrated to the States, Ayn Rand learned from her own experience the need to plan and budget her own finances.

Unconvincing? Here three good reasons start planning your family budget:

1. Calculating a family budget will help you figure out long-term goals and work in a given direction. If you drift aimlessly, throwing money at every attractive item, how will you be able to save and go on a long-awaited vacation, buy a car or make a down payment on a mortgage?
2. Family budget expenses table sheds light on spontaneous spending and forces you to reconsider your purchasing habits. Do you really need 50 pairs of black high heels? Planning a family budget forces you to set priorities and refocus on achieving your goals.
3. Illness, divorce or job loss can lead to a serious financial crisis. Emergencies happen at the most inopportune times. This is why everyone needs an emergency fund. The structure of the family budget necessarily includes the column “ saving“- a financial cushion that will help you stay afloat for three to six months.

How to properly distribute the family budget

A few rules of thumb for family budget planning that we will present here can serve as a rough guide for making decisions. Everyone's situation is different and constantly changing, but the basic principles are a good starting point.

Rule 50/20/30

Elizabeth and Amelia Warren, authors of the book " All Your Worth: The Ultimate Lifetime Money Plan" (in translation " Your Whole Wealth: A Master Money Plan for Life") describe a simple but effective way to create a budget.

Instead of breaking down a family's expenses into 20 different categories, they recommend dividing the budget structure into three main components:

• 50% of income should cover basic expenses, such as paying housing, taxes and buying groceries;
• 30% – optional expenses: entertainment, going to a cafe, cinema, etc.;
• 20% goes to pay off loans and debts, and is also set aside as a reserve.

80/20 rule

Step 2: determine the income and expenses of the family budget

It's time to look at the structure of the family budget. Start by making a list of all sources of income: wages, alimony, pensions, part-time jobs and other options for bringing money into the family.

Expenses include everything you spend money on.

Divide your expenses into fixed and variable payments. Fill in the fields for variable and fixed expenses in the table for maintaining a family budget, based on your own experience. Detailed instructions for working with the excel file are in the next chapter.

When distributing the budget, it is necessary to take into account the size of the family, living conditions and the desires of all members of the “unit of society”. A short list of categories is already included in the example table. Consider the categories of expenses that will be needed to further detail the structure.

Income structure

As a rule, the income column includes:

• salary of the head of the family (indicated “husband”);
• salary of the general adviser (“wife”);
• interest on deposits;
• pension;
• social benefits;
• part-time jobs (private lessons, for example).

Expense column

Expenses are divided into constant, that is, unchangeable: fixed tax payments; home, car and health insurance; constant amounts for Internet and TV. This also includes those 10–20% that need to be set aside for unforeseen cases and “rainy days.”

Variable expenses column:

• products;
• medical service;
• spending on a car;
• cloth;
• payment for gas, electricity, water;
• personal expenses of spouses (entered and planned separately);
• seasonal spending on gifts;
• contributions to school and kindergarten;
• entertainment;
• expenses for children.

Depending on your desire, you can supplement, specify the list or shorten it by enlarging and combining expense items.

Step 3: Track your spending throughout the month

It is unlikely that you will be able to draw up a family budget table right away; you need to find out where the money goes and in what proportions. This will take one to two months. In a ready-made Excel spreadsheet that you can download for free, start adding expenses, gradually adjusting the categories " for yourself».

Below you will find detailed explanations for this document, since this Excel includes several interrelated tables.

• The purpose of this step is to get a clear picture of your financial situation, clearly see the cost structure and, at the next stage, adjust the budget.

Step 4: Separate Needs from Wants

When people start recording their spending, they discover that a lot of money " flies away"for completely unnecessary things. Impulse, unplanned expenses seriously hit your pocket if your income level is not so high that a couple or two thousand go unnoticed.

Refuse to purchase unless you are sure that the item is absolutely necessary for you. Wait a few weeks. If it turns out that you really cannot live without the desired item, then it is indeed a necessary expenditure.

A little advice: Put your credit and debit cards aside. Use cash to learn how to save. It is psychologically easier to part with virtual amounts than to count out pieces of paper.

How to properly plan a family budget in a table

Now you know what is really happening with your money.

Look at the categories of expenses you want to cut and make your own plan using a free excel spreadsheet.

Many people don't like the word " budget”, because they believe that these are restrictions, deprivations and lack of entertainment. Relax, a personalized spending plan will allow you to live within your means, avoid stress and sleep better rather than worrying about how to get out of debt.

“An annual income of £20 and an annual expenditure of £19.06 leads to happiness. An income of 20 pounds and an expense of 20.6 leads to suffering,” Charles Dickens’ brilliant note reveals the basic law of planning.

Enter your prepared family budget into the table

You have set goals, determined income and expenses, decided how much you will save monthly for emergencies andlearned the difference between needs and wants. Take another look at the budget sheet in the spreadsheet and fill in the blank columns.

The budget is not static, once and for all fixed figures. If necessary, you can always adjust it. For example, you planned to spend 15 thousand monthly on groceries, but after a couple of months you noticed that you only spend 14 thousand. Make additions to the table - redirect the saved amount to the “savings” column.

How to plan a budget with irregular income

Not everyone has a permanent job with regular paychecks. This doesn't mean you can't create a budget; but this means you have to plan in more detail.

• One strategy is to calculate the average income over the past few years and focus on this figure.
• Second way- determine a stable salary from your own income - what you will live on, and save the excess into an insurance account. In lean months, the account balance will decrease by exactly the missing amount. But your “salary” will remain the same.
• Third planning option– maintain two budget tables in parallel: for “ good" And " bad» months. It's a little more complicated, but nothing is impossible. The danger that awaits you along this path: people spend and take out loans, waiting for income from the best months. If the “black streak” drags on a little, the credit funnel will eat up both current and future income.

Below you will find solutions on how to distribute the family budget according to the table.

After we have decided on the main goals, let's try to distribute the family budget for the month, indicate current income and expenses in the table, in order to manage funds wisely, to be able to save for main goals, without missing out on current and everyday needs.

Open the second sheet " Budget"and fill in the fields of monthly income, annual income, and the program will calculate the results itself, example:

In columns " variable expenses" And " fixed costs» enter estimated numbers. Add new items where " other", in place of unnecessary names, enter your own:

Now go to the tab of the month from which you decided to start saving and planning family expenses. On the left you will find columns in which you need to record the date of purchase, select a category from the drop-down list and make a note.

• Additional notes are very convenient to refresh your memory if necessary and clarify exactly what the money was spent on.

Simply delete the data entered in the table as an example and enter your own:

To account for expenses and income by month, we suggest looking at the table on the third sheet in our Excel " This year", this table is filled in automatically based on your expenses and income, sums up and gives an idea of ​​your progress:

And on the right there will be a separate table that will automatically summarize all expenses for the year:

Nothing complicated. Even if you have never tried to master working with Excel tables, selecting the desired cell and entering the numbers is all that is required.

Poll: How old are you?

Today we will look in detail at what it is family income and expenses. We already know that it is a financial plan for a certain period of time (most often for a month or a year). It is a list of items of family income and expenses.

The family budget is compiled for:

• control over the financial situation of the family
• achieving financial goals (apartment, car, vacation, education, etc.)
• financial protection of the family (creating cash savings in the form of a reserve fund, investments and pension savings).

A family budget is needed primarily in order to understand WHERE DOES YOUR MONEY COME FROM AND WHERE DOES YOUR MONEY GO?Only by understanding the movement of money in the family can you control it and begin to manage it.

The main task when drawing up a budget is to correctly distribute future income to the necessary expense items, so that ultimately expenses do not exceed income (so that the budget is balanced) and we have enough money to live. To do this, it is necessary to correctly determine the main items of income and expenses in the family.

Family budget income.

D departure - This money or wealth received from a business, individual, or activity.

It’s more or less clear with them. There are not many sources of income in the family. First of all, you need to determine WHERE DOES THE MONEY COME FROM?, i.e.how much, where and when do you get. I will provide a list of possible sources of income, and you will need to select from it those items that are suitable specifically for your family , write them out and calculate all planned monthly income for all family members. Then you need to add up all these incomes and you will determine total family income for next month.

Cash family income may include cash receipts in the form of:

• 1. Wages for hired work (at the main job, part-time or at your own enterprise)
• 2. Income from self-employment
• 3. Business income
• 4. Dividends on shares
• 5. Interest on bank deposits
• 6. Income from rental real estate (apartments, cottages, garages)
• 7. Income from the sale of real estate
• 8. Income from the sale of products from household plots
• 9. Income from the sale of personal belongings.
• 10. Scholarships
• 11. Pensions
• 12. Child benefits
• 13. Alimony
• 14. Help from family and friends
• !5. Gifts
• 16. Prizes, winnings
• 17. Tax refund
• 18. Grantov
• 19. Inheritance

So you calculated the expected total family income for a month.

In order to draw up a family budget, it is necessary to distribute this money among future expenses. This is already much more complicated. You need to create a classification of expenses that would cover all family expenses as much as possible.

Family budget expenses

Consumption – these are costs, expenses, consumption of something for certain purposes.

Now you need to define WHERE DOES THE MONEY GO, i.e.for what, how much and when you spend. To do this, you need to make a list of all expected expenses.

In general, all expenses can be classified according to several criteria.

1. By importance

• Expenses may be necessary or mandatory
• This is what is vital to us NECESSARY . They provide us with what we need first. These are expenses for food, for housing (rent, utilities), for transportation, for necessary clothes and shoes, necessary goods for the home and for health, for paying debts (on loans, bills and insurance) and, of course, for savings in the reserve fund families (minimum 10% of income). Those. These are vital expenses that provide a minimum subsistence level for the family. It is recommended that these expenses account for no more than 50-60% of the total budget.
• Expenses may be required . This is what we are WE WANT , but not vital. These are expenses for satisfying our desires and receiving pleasures. This may include: entertainment, the Internet, expensive cosmetics and perfumes, spending on hobbies, fitness, beauty salons, books, trips, etc. things that you can do without in a difficult financial situation, but with sufficient funding they are already “necessary.”
• Expenses may be “status”- expenses on goods that correspond to a high position in society and income (expensive - clothes, phones, cars, travel, etc.)
• Expenses may be unnecessary - These are expenses for goods that we could easily do without, i.e. expenses on things that are completely unnecessary for us, and sometimes even very harmful to us, see.

When creating a budget, you first need to start allocating money to necessary expenses. And plan the remaining money for the second and third group of expenses. It is precisely through these two groups that expenses can be optimized (either reducing or completely eliminating some expense items, or using them more rationally through savings). But you need to urgently get rid of unnecessary expenses; these are the main enemies of the family budget. Read how to reduce family expenses

It is important to decide what is a necessary expense for you and what is just a pleasure that you can give up for a while or forever. If you constantly follow all your desires and pleasures, you will never be able to break out of the circle of financial problems! Because your desires will grow along with your income, no matter how large they are.

And to understand what you really need, you need to make a list of needs that you are willing to spend your money on. Then you need to select the vital tasks, and prioritize the rest from most important to least important. Perhaps the least important expenses will be completely unnecessary for you.

2. By frequency

• Recurring Expenses: Expenses that recur regularly. They can be monthly and repeat from month to month (groceries, utilities, transportation, phone, etc.) or annual (taxes, insurance, tuition, vacation).
• Variable expenses: expenses that are not constant, are made either out of necessity or planned (clothing, shoes, cosmetics, repairs, household appliances, and others).
• Seasonal expenses: preparations for the winter, seasonal clothing, expenses for preparing for school, etc.
• Unforeseen expenses: expenses that arise unexpectedly and unplanned.

When planning a budget for the year, it is better to start with the rarest expenses, that is, first of all, you need to determine the amount of annual and seasonal expenses and gradually set aside money for these expense items throughout the year.

Types of family budget expenses.

And so we finally got to the classification of expense items. This table shows the main categories of family expenses.

Required regular payments	Payment of utilities and telephone, loan repayment, tuition and kindergarten fees.
Irregular payments	Payment for mobile phone, Internet, other services, insurance, taxes, etc.
Eating at home	Food and drinks for eating at home.
Nutrition outside the home	Food in cafes, restaurants, canteens, etc.
Transport	Travel by public transport, taxi, transportation of furniture, courier services, etc.
Cloth and shoes	Expenses for the purchase, repair and tailoring of clothing, linen, shoes
Cosmetics, hygiene and detergents	Cosmetics, perfumes, hygiene products, detergents and cleaning products,
Health	medications, dietary supplements, treatment, diagnostics and therapeutic procedures.
Education	Purchasing literature, textbooks, paying for courses, lectures, tutors, etc.
Sport	Payment for visits or subscriptions to gyms, swimming pools, gyms, beaches, skating rinks, payment for the services of trainers, rental and purchase of sports equipment.
Rest	Expenses associated with organizing recreation: vouchers to holiday homes, sanatoriums, camp sites; hiking, tourist trips, excursions.
Gifts and holidays	Expenses related to holidays, significant dates, family celebrations, birthdays, etc.
Pocket expenses	Funds for small expenses (newspapers, drinks, ice cream, etc.).
Debts and obligations	Different types of debts
Leisure and hobbies	Visiting cinemas, theaters, concerts; purchasing collectibles, spending on hobbies.
Homemade pets	Expenses for keeping pets and birds: food, treatment, training, hygiene, exhibitions, etc.
House, household, household appliances.	Expenses for the purchase and repair of furniture, household goods and comfort, dishes and the purchase of household and digital equipment.
Repair	Expenses for the purchase of building materials and tools (wallpaper, paints, glue, varnishes, etc.), services of craftsmen, etc.
Country house, garden plot	Costs for maintaining a dacha, garden plot, house in a village: membership fees, fuel, gas, water, electricity, purchase of seeds, seedlings, fertilizers, garden tools, etc.
Automobile	Costs for gasoline, garage, parking, repairs and maintenance, parking, fines, car wash, insurance, taxes, technical inspection, toll roads, etc.
Saving	Funds set aside in a reserve fund, for vacations or for long-term purchases, pension savings, investments.

If desired, these expense items can be broken down into smaller ones, deepened and detailed. It is worth taking a closer look at expenses in case of large expenses for any item in order to understand where the money goes, find a reserve for savings and optimize the budget.
For those who do not want to be very detailed and complicate the process of maintaining a family budget, we can offer a simpler cost structure.

• Housing expenses (rent, taxes, insurance, home maintenance, rent)
• Food expenses (groceries, cafes and restaurants)
• Debts (debts, loans)
• Transport expenses (car, public transport, taxi)
• Leisure expenses (vacations, hobbies, cultural events)
• Personal expenses (clothing, cosmetics, entertainment, books, treatment and wellness)
• Savings (reserve fund, pension savings, investments)
• Other expenses.

Now it is important for you to choose those expense items that are specific to your family or you can create your own classification of expenses. Next, you need to roughly calculate how much money is spent on each item. To do this, it is advisable to keep detailed records of all your expenses for a month (you need to carefully record all your expenses, write them down in a notebook, collect checks, receipts.) For calculations, it is very convenient to use a table in Excel or special programs for home accounting. You can see an overview of programs for maintaining a family budget