Putting Together A Household Budget That Actually Works!

Key Takeaways



Free budgeting app that budgets for you

Emergency Fund

Savings account set aside for unexpected expenses

Rainy Day Fund

Money set aside for unexpected and lower-cost expenses, like home maintenance or traffic tickets, and should be separate from an emergency fund.


Hey there! I'm so glad you're here. Budgeting has been a life-changing experience for me, and I want to share it with you. It doesn't need to be hard or scary. In fact, it can be really simple if you just follow the steps below:

  • List your income.
  • Include all sources of income, including any bonuses or raises that you might receive.
  • List your expenses.

This is the most important step, and can be time-consuming. You will want to include all of your regular monthly, quarterly or annual expenses in this list so that you can see where your money is going each month. This includes:

  • Rent/mortgage
  • Utilities (electricity, gas and water)
  • Phone bills/internet fees
  • Food costs (groceries)

See where you're going over budget and cut back

After you've made your budget and tracked your spending for a few months, it's time to look at the numbers. You want to see where you're going over budget and cut back.

To do this, take a look at each category of expenses and see if there are any areas where you could cut back on spending. For example:

  • If you're eating out more than usual, consider setting aside some money each month for meals or snacks that can be brought from home instead of buying them on impulse at the store or restaurant (or ordering delivery).
  • If transportation costs have spiked recently due to car repairs or gas prices being higher than usual, try carpooling with coworkers or using public transportation more often instead of driving alone everywhere all day long; these simple changes can save hundreds per month!

Create a rainy day fund

Once you've established a budget and built up some savings, it's important to have a rainy day fund.

This is an account that you can dip into when unexpected expenses crop up or when there's just not enough money in your normal budget.

For example, let's say one of your kids gets sick and has to go see the doctor--that would be an unexpected expense! You wouldn't want to use up all of your savings on medical bills (and then not have anything left over), so having some money set aside specifically for these kinds of situations will keep them from putting too much strain on other parts of your finances.

If this sounds good so far but also seems like something that might be hard for some people who don't know where their next paycheck is coming from, don't worry! There are ways around it:

Have an emergency fund that you don't touch, except for emergencies

An emergency fund is a separate account that you can use to pay for unexpected expenses. You'll want to keep this money separate from all of your other accounts and use it only for emergencies, such as car repairs or medical bills. We highly recommend using the Mooch app to automatically set aside a bit of cash every month. Mooch keeps it separate from your regular bank account (and safe from those late night online shopping sprees). Plus, you earn cash for everything you save!

Why do I need an emergency fund? Because life happens! And when life happens, it's usually not at a time when we have enough money in our checking account to cover whatever has gone wrong. In fact, most people don't save anything at all before something goes wrong--they just spend everything they make (and then some) until they run out of cash flow altogether and have nothing left over at the end of each month but debt payments and student loans payments...which means no money left over at all! But if there were ever an emergency situation where someone needed funds right away without having time on their side...what would happen then?

How much should I put into my emergency fund? That depends on how much risk tolerance you have with regard to saving versus spending: some people like having more than one year's worth saved up; others are fine with just six months' worth stored away somewhere safe so long as it won't affect their lifestyle too much if things go south unexpectedly during those first few months after losing work due  "to unforeseen circumstances." Either way though - regardless whether one person likes having multiple years' worth saved up while another prefers less than half - both types still agree upon two things: 1) Having accesses savings account(s) specifically designated solely towards emergencies makes sense because no matter how good our plans might seem today (even if we've planned everything down pat), tomorrow could always bring unexpected challenges which require us needing additional capital fast without any warning whatsoever; 2) Making sure those funds remain untouched unless absolutely necessary ensures they're available immediately when needed most so that no matter what happens next year or even five years down line from now - once again regardless whether good fortune strikes or bad luck strikes first--you'll always know you have funds to cover anything life throws your way.

Make sure to include taxes in your budget when calculating how much money you actually have at the end of the month, which is really important when it comes to budgeting!

It's important to include taxes in your budget when calculating how much money you actually have at the end of the month, which is really important when it comes to budgeting! Taxes are a big part of your monthly expenses and they can't be cut back on. Taxes are also a fixed expense, so if your income changes from month to month then that will affect how much money goes towards taxes.

The percentage taken out for taxes varies depending on where you live; however, it usually ranges anywhere between 15% - 50% depending on what province/state/country etcetera. This means that if someone makes $2k per month after tax deductions then they probably only see about $1k-1.5k after taking into account all those pesky government fees too!

A budget will help you stay on track with your finances

A budget is a plan that helps you plan for future expenses, set goals and track progress toward those goals. It also allows you to see where your money is going so that any changes can be made in order to meet those goals. For example, if the goal was to save up enough money for a car payment by next month but it looks like there isn't going to be enough in time, then adjustments need to be made before it's too late! Our Mooch app can help you budget automatically every month based on your fixed expenses and savings goals.

Setting up a household budget can seem overwhelming at first but once done correctly it should feel more like an organizational tool rather than another chore on top of everything else! To get started:

  • List all sources of income (i.e., job wages) as well as expenses (i.e., rent/mortgage). Make sure these categories match up with previous months' statements so there aren't any surprises later down the road when tax season rolls around again next year!


A budget is a great way to keep track of your finances, but it can be a little overwhelming at first. That's why we've provided all of the tips and tricks above so that you can create a household budget that works for you! With this guide in hand, hopefully you're ready to start planning out how much money goes where each month.

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