What are household expenses? How is the balance?

Society is constantly evolving, household spending tends to increase rapidly and continuously fluctuate from time to time. So to spend effectively in the family, we need to consider how the spending budget is reasonable, in line with the family's income and what spending plan we can apply to both save and save. get an amount without worrying about overspending? Lamchutaichinh.vn will answer all of you right away in the article below.

What are household expenses?

Household expenses are all expenses intended to serve the material and cultural needs of family members through their source of income.

Specifically, each family normally spends on material needs such as food, drinking water, personal items, electricity and water bills, etc. The expenditures to meet spiritual needs are entertainment (going out). play with friends, watch movies ...), travel, rest...

The necessity of planning for household expenses

Planning for family expenses is really important because improper allocation of expenditures and budgets can make your family vulnerable to financial imbalances, even spending. out of control.

Recurring expenses are often prone to sudden changes or unexpected flooding that you cannot anticipate. As the cost of your children's education increases or your child is planning to attend extra classes, you need to have savings for this. Therefore, not having a spending plan will put your family in financial trouble.

In addition to the necessary expenses, your family is very likely to encounter unexpected risks such as unemployment, illness or disease... And in order not to be passive before these arising situations, you must know Make a clear family spending plan so that your family can control finances as well as accumulate an amount as a backup source.

Financial pressure is really terrible, it can cause your family to have unnecessary conflicts or often have to take out consumer loans to pay. So, take a look at the list of household expenses below to plan effectively.

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List of household expenses

There are many household expenses. Below are the most basic expenses that are almost made in many families today.

Spending on food, clothing, and housing

This is the expense that accounts for the largest proportion of household expenses and is an essential expense in daily life for every family.

Regarding food, every family prepares 3 meals a day, many families with children going to school, staying at school or family members who are busy at work and cannot eat at home have to pay extra money for their meals. meal out.

Regarding apparel, buying clothes and shoes is not a monthly expenditure, so if your family invests in durable goods, not only your family's life is being improved in quality but also in durable use. Over time, saving on garment costs.

Regarding housing, housing demand in urban areas is increasing. Large cities and industrial zones are very densely populated, so the demand for electricity, water and sanitation is very high. This results in costs that can fluctuate from month to month. In addition, at present, there are many families who still do not have a stable house, so they have to pay extra rent, so please spend wisely so as not to over-consume.

The need for travel

The cost of gasoline is currently increasing continuously and has not shown any signs of cooling down, which has greatly affected the lives of many low- and middle-income households. Not only that, every family has to worry about extra costs for car maintenance and repair every month, making them more tight-lipped in family expenses.

In addition, other revenues include travel expenses to the workplace such as buses, taxis, car rental services from technology companies, etc., or the cost of renting cars or motorbikes in installments... Many families Families who are unable to take their children to school have to pay an additional fee to pick up their children.

Cost of health care

These are fees that include routine check-ups, medications, medical bills, health insurance or other care costs for grandparents, parents, and children.

The cost of health care is really high, so the larger the family, the more difficult it is financially, especially poor households and families whose members have to undergo long-term treatment due to chronic diseases.

Expenses for spiritual cultural needs

If you stay at home forever, just go to work and then come home to rest, it's really a waste of time. Therefore, everyone has spiritual and cultural needs to rest and entertain after a long and tiring day of work.

Depending on the needs and income, each family has different ways of entertainment. They can simply entertain at home such as signing up for Internet services to surf the web, subscribe to TV services to watch together... Or go out together to watch movies, eat, shop, and have more money to travel. a few days at famous places, buy tickets to visit grandparents…

However, make a budget to maintain the essential needs in the family first, if there is a large amount left, then fulfill this need.

Expenses for study

Everyone wants their children to have a good educational environment to develop, so many families always invest and create the best conditions for their children. In addition to the fixed annual school fees, parents also have to spend money on uniforms, books, personal computers, and stationery for their children to study comfortably.

At the same time, they also have to spend money for advanced education or for gifted and sports subjects such as piano lessons, martial arts lessons, basketball games, etc. so that their children can keep up with their studies and develop their own skills. .

The need for social communication

This is an irregular expenditure such as money for weddings, ceremony money, gifts for birthdays or holidays such as Tet... Not only that, many families also have to maintain the planned fee from before such as money for parents, money for charity...

In addition, there are expenses planned for the future such as life insurance money, bank savings to earn profit...

Some family spending secrets SHOULD KNOW

With so many household expenses, to control and manage a tight spending budget, you can follow some of the following tips. Make sure that after following along, you will see how effective budget control planning can be.

JARS spending method

This is a 6 jar method to manage expenses and finances effectively and you must divide all of your family's income into these 6 separate funds. In there:

Essential needs account for 55%

This fund helps to meet daily necessities such as food, clothing, housing, gas, transportation, electricity and water bills and other expenses.

Long-term savings account for 10%

This is the money your family needs to accumulate for a long time and you can save it in the bank to make a profit. And tomorrow in the future, if you buy a house, buy a car, you will have money to spend without affecting other expenses in the family.

Vocational education accounts for 10%

This fund is used for personal development of each member of your family. Not only taking care of your children's studies, but also when you go to work, you need to continuously improve your professional qualifications.

Financial freedom is 10%

This is money you can spend on what you're looking to do. As your family's intention is to buy a plot of land to build a house for rent, this reserve will help you do that. And until you retire early, your family can still live comfortably on this rental.

Enjoy 10%

This is the fund your family uses to take care of yourself as well as enjoy fun and entertainment activities.

Giving accounts for 5%

If possible, your family can deduct 5% of your income to donate to charity, participate in community activities... to share the joy.

Method of spending 50/20/30

The 50/30/20 rule is the simplest method of spending for families just starting to learn to plan and this method divides income into the following 3 main groups.

50% of demand

Essential expenses for the family include: housing, transportation, meals, electricity and water, education and training expenses for children...

30% desired

These are expenses related to friends, entertainment, shopping or personal interests... and often fluctuate between months depending on the preferences and lifestyle of each person.

20% savings

The remaining percentage is the amount you need to save as a backup. Thus, when encountering situations arise, your family can proactively solve them without resorting to financial help from others.

Make a spending budget

Making an expense budget is a method of recording and summarizing all your family's last month's expenses, and then comparing the amounts the family used to make a specific plan for the next month. At the same time, in the spending budget table, you must set a specific number for each item of spending limit to better control family spending.

Set a savings goal

Setting a savings goal will help your family be more motivated to save. In the process of saving, you need to consider and come up with a specific plan for implementation. You can cut unnecessary expenses such as shopping, travel, etc. Take advantage of every method to spend wisely because when you save a bank deposit, you can use the money to make up for it. back to your family later.

Make a list before you shop

Supermarkets, shops often display very beautiful products and many products have promotions that make us unable to take our eyes off it. Therefore, make a list of things to buy and do not buy unnecessary items. However, if you feel this way is too difficult, you can calculate the amount and bring it with you, in case you want to buy more and can't buy it.

Save electricity and water

Turn off electrical appliances you don't need, or use water more sparingly. Specifically, you can limit the time to shower again to about 15-20 minutes, or invest in a touch-sensitive faucet so that the water does not flow continuously. In addition, your family can also invest in solar batteries to save more money on electricity.

Looking for more sources of income

In addition to saving ways, you can also earn extra income by side jobs. But if you are too busy, do not have time for a second job, or try to save to build a rental house. Only then will your family have more income to stabilize life.

Conclusion

Lamchutaichinh.vn hopes that the above tips will help you make a spending plan, there is a way household spending an effective way to control spending in the best way and achieve the financial goals you have set out in the plan.

The article was edited by: Lamchutaichinh.vn