1. What is Household Budget?

A household budget is a financial plan that compares your income to your expenses, helping you understand your financial situation and plan for savings or debt reduction.

2. How Does the Calculator Work?

The calculator uses the simple budget formula:

Where:

• \( Income \) — Total monthly income from all sources
• \( Expenses \) — Total monthly expenses including bills, groceries, etc.
• \( Budget \) — The remaining amount after expenses

Explanation: Positive results indicate money available for savings, while negative results show deficit spending.

3. Importance of Budget Calculation

Details: Regular budget tracking helps maintain financial health, prevents overspending, and enables better financial planning for future goals.

4. Using the Calculator

Tips: Enter your total monthly income and expenses in your local currency. Be sure to include all regular expenses for accurate results.

5. Frequently Asked Questions (FAQ)

Q1: What counts as income?
A: Include all regular income sources - salaries, pensions, rental income, and other stable monthly earnings.

Q2: What expenses should I include?
A: Include all regular monthly expenses - rent/mortgage, utilities, groceries, transportation, loan payments, and other fixed costs.

Q3: What does a negative budget mean?
A: A negative result means your expenses exceed your income, indicating you're spending more than you earn.

Q4: How often should I calculate my budget?
A: Monthly calculations are recommended, especially when income or expenses change significantly.

Q5: Should I include irregular expenses?
A: For annual expenses (like insurance), divide by 12 to include a monthly portion in your calculations.