Family Budget and Household accounts (Income & Expense)
Create your family or personal budget to manage your Household accounts and save money, using this simple template suitable for anyone with Income & Expense accounting.
Get started with this template
This template is based on the management of Household accounts. In the Budget table you will be able to enter all the fixed and variable revenues and costs that you forecast to arise during the year. Reports can be generated automatically, at any time and will allow you to have an immediate overview of the accounts in their current and forecasted status.
Create a new file
- In the File menu, select the New command (from Templates)
- Select Universal-English in Region
- Select Private in Category
- Click Family budget and Household accounts (Income & Expense)
- In the active window that displays, enter the headings (ex. Smith family, 2022 Household accounts)
- Save the file with it's name
initial liquidity balance
The initial balances for accounts in Assets and Liabilities are to be entered here in the Opening column.
Revenue, Expenses and Budget columns are filled automatically and updated by the program, as values are entered in the Budget and Transactions tables.
Categories for Revenues and Expenses are already set up in the Categories table. Revenues and Expenses can also be allocated by activity as well as Cost centers available to indicate the amount of expenses for each family member.
Categories can be adapted by adding other items of expenses or revenues, or you can alter their order.
Expenses are subdivided as follows in the Categories table:
These are the costs that are recurring on a monthly or annual basis (ie. rent, train passes, buses, gym etc). These are easy to budget as the is usually known in advance.
These are costs that may vary and are differentiated as follows:
- Vital (indispensable for living) - Included in this category are the customary expenses such as food, children, pharmacy, transport etc.
- Optional (not strictly indispensable) - Costs such as bars and restaurants, cosmetics, cigarettes etc.
- Culture - such as cinema, books, travel etc.
- Extra - expenses for exceptional events such as repairs, purchase of furniture, gifts etc.
Budget your expenses throughout the year
In order to project your expenses for the whole year, you can enter all income and expenses in the Budget table.
As a fundamental rule for budgeting, check your disposable income and set your objectives to be achieved.
- Determining income it is very simple as it is generally fixed (ex salary, pay);
- Defining expenses might take a bit more thinking, but shouldn't be too complicated either. Start by entering Fixed Costs, for which amounts are known (rent, regular subscription and passes, insurance premiums etc). Next, review all other variable costs. In Categories you can determine those that are vital, optional, culture and extras. Reviewing figures for the previous year, you might get a good idea for a weighted calculation of amounts to be budgeted.
Enter Transactions for the day
Enter the date, description and the amount for Income or Expense. By entering the reference abbreviation of the cost centre (for family members) in the CC1 column, amounts allocated to each of them will be displayed.
Get ready for the moment of truth at month end!
Month end will be the appropriate moment to check your accounts and ascertain wether you have achieved your objectives.
Banana accounting will automatically generate a Balance Sheet for your Household and all you need to do is to verify how much you may have spent or saved, by comparing the actual balances with the respective budgeted amounts.
Realizing in time of certain wastes can be useful to form good intentions for the following month. Being made aware of non budgeted expenses will help you implement adjustments for the following month.
- Select Enhanced balance sheet with groups ... in the Account1 menu
- Options for current or budgeted balances are available in the active window that is displayed.
- Click Period in the menu to indicate your desired period (month, quarter, semester, year).
Here's your Balance Sheet for end of January:
You now have a Balance Sheet of your Household accounting at your disposal in a transparent way, without the hassle of having to go through manual calculations. You will have a clear vision of available liquidity and how you have spent your money or made savings.
If you have achieved your objectives, you're allowed to give yourself a pat on the back, otherwise you have the necessary information to make decisions about things to improve in your spending habits to achieve them.