Budget book: A practical helper to keep your finances under control

Created: 10/15/2022 4:36 p.m

A budget book takes a little work, but can save you money in the end.

If you want to keep track of your finances now, you shouldn't be put off.

Here are a few tips to follow along.

Hamburg/Mainz ‒ "Oh my goodness, where has all that money gone?" A question that consumers are likely to ask themselves when they take a look in their wallets.

Every visit to the supermarket and discounter raises the question: "Who should pay for it?" And at the end of the month, who wants to know where they spent the money, where the galloping inflation is particularly noticeable and where it is better to save in the future could, should get a household book.

This way, the consumer can keep an overview of his own finances and can also identify potential savings more easily.

All income and expenses are meticulously recorded in a budget book.

Consumers use it to get a financial overview, see possible weaknesses and can then take countermeasures immediately.

Seven steps to the household book - this is how it works:

The budget book: Create, then enter and add up income

Step 1: Create a budget book:

Whether it's an Excel spreadsheet, an app or the classic way with pen and paper: there are different ways to create a budget book.

"Some will prefer a digital form because an app or program calculates the amounts itself," says Antje Kahlheber from the Rhineland-Palatinate consumer center based in Mainz.

When it comes to online offers, however, consumers should be aware that this is sensitive data that is entered in a digital format.

"Here it is important to check what data protection looks like," advises Sally Peters from the Institute for Financial Services (iff) in Hamburg.

Step 2: Enter regular income:

First, consumers enter their wages, salary, unemployment benefit or pension in their budget book.

Income such as child benefit, housing benefit, rental income or other income should also be included in the household book.

If you have different incomes and now add them up, you can see at a glance how much money you have available each month.

The respective totals can be calculated and noted both monthly and annually.

also read

Germany-wide Lidl recall: danger from metal parts - manufacturer takes product off the shelf

"... when you order your dirt": DPD customer finds unabashed message

The budget book: compare expenses to income

Step 3: Collect fixed expenses: Fixed

expenses include living costs, i.e. rent, real estate loan installments and ancillary costs.

In addition, there are expenses for mobility, telephone and internet, electricity or gas, insurance, various subscriptions, the broadcasting fee and possible memberships in clubs.

It is best if consumers enter in their household book how much money they spend on each item each month and year.

Finally, all expenses are totaled - once a month and once a year.

Very important: Collect all receipts for a household book.

(Iconic image) © Erwin Wodicka/imago

Step 4: Determine the amount for food, leisure time and Co.:

If you subtract the sum of the fixed monthly expenses from the sum of the monthly income, you can calculate your

.

That is the amount that is now left over for food, drink, household, leisure and Co.

A simple example: Assuming that the monthly income is 3000 euros and the fixed monthly expenses are 1800 euros, then an amount of 1200 euros remains for other, i.e. irregular expenses.

The budget book: Calculate again and then take stock

Step 5: Write down irregular expenses

Now begins the work that will surely open the eyes of most consumers.

Because now every expense that arises is individually listed and noted.

These are, for example, costs for food and drink purchases as well as expenses for household, drugstore items, clothing and leisure time.

Consumers should collect all receipts for this.

Don't forget: Write down all bills with card payments and record the expense items in the household book.

Step 6: Take stock:

The irregular expenses are now deducted from the budget that the consumer has available every month.

Back to the example calculation under step 4: So if you have spent 950 euros from your 1200 euros budget at the end, you can use the remaining 250 euros to create a reserve or invest the money.

The household book: ordering and re-sorting

Step 7: Reorganize your finances if necessary:

​​Anyone who finds that their money is slipping more or less regularly into the red should check where exactly the problems lie.

Are the expenses only temporarily high or for many months?

Consumers should now

.

Insurance contracts can often be put to the test or adapted to a changed life situation.

Sometimes you can also save a few euros when shopping.

About food.

For example, if you choose your own brand instead of a branded product, you can escape the dramatic price increases in retail.

These are the most popular beers in Germany

View photo gallery

Sometimes it helps not to go to the supermarket when you are very hungry, as this leads to a lot of spontaneous purchases that are actually unnecessary.

With a few effective tricks, the household budget can be spared a little, at least when doing the weekly shopping.

Possibly another option to improve your finances: Negotiate a salary increase with your employer.

Sabine Meuter, dpa / sth