What is home budgeting
How do you get started? Practical steps:
Create the right conditions:
It is best to find a moment during the week to focus on your finances in peace and quiet. If you live with your family or partner, it is worth inviting them to this task. Even if they are not interested at first, show them the positive effects – over time they will see the benefits themselves and you will work together. It’s a common goal!
Observe before you plan (the first month is all about observation!):
Take a relaxed approach to running a budget. In the beginning, preferably for a month, simply observe and record all your expenses and income.
Don’t change anything, just take notes. In this way you will know the real structure of your expenses in Poland and can start planning properly for the following months. Keeping a budget is supposed to motivate us, not drive us into complexes. It is supposed to set us on a path – if we stick to it, we will start to control our finances.
Gather the information you need: To start with, you need:
- Information about the size and type of income for the month (e.g. paycheck, benefits)
- A bank statement or access to e-banking – this is where you will see most of your income and expenditure
- Receipts and invoices for purchases – collect these throughout the week. This is very important as many smaller expenses are paid in cash and can easily be forgotten
IMPORTANT Each household budget is individual and should be tailored to the specific household and its specificities in Poland. There are many ready-made household budget templates available on the Internet, which you should use. On the other hand, you have to plan the individual categories of income and expenses yourself; they are supposed to show your expenses and your plans, not someone else’s.
If this is your first time starting to run a household budget and you do not know what categories to divide your expenses into, welcome to the next exercise.