1. What is Household Budget?

A household budget is a financial plan that compares your income against your expenses to determine available funds. It helps manage finances and plan for future spending or savings.

2. How Does the Calculator Work?

The calculator uses the simple budget formula:

Where:

• \( Income \) — Total household income from all sources
• \( Expenses \) — Total household expenses including fixed and variable costs
• \( Budget \) — Remaining funds after expenses are paid

Explanation: Positive budget indicates surplus funds, negative budget indicates deficit.

3. Importance of Budget Calculation

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

4. Using the Calculator

Tips: Enter all income sources (salary, investments, etc.) and all expenses (rent, utilities, groceries, etc.) in the same currency. Use accurate figures for best results.

5. Frequently Asked Questions (FAQ)

Q1: What time period should this budget cover?
A: Typically monthly, but can be adjusted for weekly, quarterly or annual budgets as needed.

Q2: Should I include taxes in expenses?
A: Yes, include all tax obligations as part of your expenses for accurate budgeting.

Q3: What if my budget is negative?
A: A negative budget means expenses exceed income. You'll need to reduce expenses or increase income to balance your budget.

Q4: How often should I calculate my budget?
A: Monthly calculations are recommended, with quarterly reviews to adjust for changes in income or expenses.

Q5: Should savings be included as income or expense?
A: Savings should be treated as an expense (money leaving your account) in your budget calculations.