Ways to run a household budget
Tools and apps
You can use a traditional notebook and pen, an Excel file (or other spreadsheet) or a phone app to keep a household budget.
Don’t worry if collecting receipts and keeping records takes a lot of self-discipline at first – you’ll soon see benefits that definitely reward the effort, and keeping a budget, like many activities, will naturally become a habit. Choose the way that suits you best.
The most effective way of keeping a household budget is one that is consciously chosen by you. We are all different – for one person, a budget kept traditionally in a notebook will be best, someone else sees their budget only in Excel, and another person prefers the convenience of a mobile app.
It doesn’t matter which method you choose, the important thing is that it is effective and simple for you. Experiment to find the perfect one!
The traditional notebook and pen:
For whom? For people who prefer to write by hand, don’t feel confident with technology or simply like physical control over their finances.
Advantages: No internet access required, free of charge, very easy to use. Can be taken anywhere.
Disadvantages: Can be less legible than digital format, no automatic calculations, easy to lose, can’t be backed up.
How to use? Divide the pages into columns: Date, Description of expense/income, Amount, Category. You can also draw two columns: “Income” and “Expenditure”, and add to them on an ongoing basis.
Spreadsheet (Excel, Google Sheets, LibreOffice Calc):
For whom? For people who have basic computer and office software skills. Offers great flexibility and computing power.
Advantages: Automatic calculations (totals, balances), easy sorting and filtering of data, ability to create charts and visualisations, easy copying and creation of templates, free online options (e.g. Google Sheets, available by logging into a Google account).
Disadvantages: Requires a computer or smartphone, may initially seem complicated for those unfamiliar with Excel.
How to use?
- Create a new worksheet. In the first row, enter the column headings: Date, Description, Category, Amount (Income), Amount (Expense), Balance.
- Enter each transaction on a new line.
- Use simple formulas: e.g. =SUMA(range_cells) to sum income and expenditure. You can calculate the balance on an ongoing basis, e.g. =Previous_balance + income – expenditure.
- You can find ready-made excel household budget templates online, which you can adapt to your needs.
Household budget template available for download in Excel – XLSX file
Mobile phone apps:
For whom? For people who value convenience, quick access and automation. The phone is always at hand, so you can quickly complete the day’s expenses, e.g. on the bus or while waiting in line.
Advantages: Quick addition of transactions, graphical presentation of data (charts, tables), notifications, possibility to plan future spending, offline availability.
Disadvantages: Some features may be chargeable (premium versions), need to take care of data security, may require learning the application interface.
PanParagon
Description: An app that makes it easy to store receipts in digital form. You can scan the receipt with your camera and the app automatically reads the most important data (amount, date, shop name). It allows you to create spending statistics, view promotional newspapers and create shopping lists.
List of applications:
PanParagon
Description: An app that makes it easy to store receipts in digital form. You can scan the receipt with your camera and the app automatically reads the most important data (amount, date, shop name). It allows you to create spending statistics, view promotional newspapers and create shopping lists.
Link: https://panparagon.pl/
4grosze
Description: Free (on a single device) budgeting application using the envelope method. It allows you to plan your spending by allocating available money into virtual ‘envelopes’ for different purposes, e.g. food, fees, pleasure. This tool focuses on consciously allocating money before it is spent.
Link: https://4grosze.pl/
Listonic
Description: Although not a typical budgeting app, Listonic is very popular for creating shopping lists. It allows you to plan your purchases in advance, which helps you avoid impulsive spending and control your budget for groceries and household items. The app allows you to share lists with other household members.
My Finances – spending and budgeting
Description: A simple and clear application for entering income and expenses manually. Allows you to categorise transactions, create budgets for the period and generate reports that show what you spend your money on.
Link: (App available on Google Play and App Store)