This document provides guidance on preparing a basic family budget in 5 points: 1. Add up all net household income including salaries, pensions, benefits, business income, and rents. 2. Calculate all expenditures including bills, food, transportation, clothing, entertainment, and services to determine total spending. 3. Compare total income to total expenditures and ensure income exceeds or equals expenses, with any surplus going to savings and any deficit addressed by reducing costs, increasing income, or obtaining loans. 4. Review expenses and identify unnecessary "luxury" costs that can be reduced or eliminated to lower total spending. 5. Regularly update and check the budget to monitor that income still covers needs and make adjustments if

1. Basic family budget –
theoretical part
Preparation of the family budget
eTwinning project
2017

2. POINT 1 - add up all your net income
• By income we mean all the money recieved
by household (salary, pension, promotion,
benefits, income from business, rent etc.).
• indicate the average net income (after tax) in
the region = father + mother
• find out how much can be spent - maximum
expenses (if you do not want to live in debt)

3. POINT 2 - Calculate all the expenditures
• create a list of whatever you normally spend
your resources on
• prepare the invoices for rent, gas, water,
electricity, telephone, internet, radio, television
• think about spending money on food,
transportation, clothing, magazines, books,
culture and social events, various services or
insurance
• add up all these items and find the expenditure
side of the budget

4. POINT 3 - find the difference between
income and expenditures
• compare income and expenditures
• keep in mind one basic rule: "the money coming into the
household (income) must be greater than or equal to the
money that leaving the home (expenses)"
• if income exceeds expenditures, you have a surplus of
money, and you create your savings
• if expenses exceed income, you have a lack of money that
needs to be resolved:
– live sparingly and to eliminate or reduce spending
– reflect on how to increase your income
– in case of an unexpected event or when profitable to invest,
ask the bank for a loan

5. POINT 4 - review and adjustment of
expenses
• think and reduce your expenses. Divide them
into:
– necessary - rent, energy, food, transport, ...
– side (luxury) - fun, food at the restaurant and so
on, try to reduce these or completely cross out
• try to find the same thing for less money
• pay in advance (advance payment)
• if you have more expense, use installments

6. POINT 5 - If you prepared your budget, try
to update and check it regularly
• compare the plan with the reality and if you
find a difference, think about why this is so
• regularly check if your income covers your
needs

7. • text originated from:
• http://www.fininfo.sk/sk/ja-a-financie/ako-si-
pripravit-rodinny-rozpocet