Financial Planning – Simple Budget Calculator without the Electronics


Times are tough. With prices of common commodities constantly on the rise, most homemakers, even those with regular jobs, find it hard to make ends meet. Planning the household budget is not an easy task but it is imperative to have a good budget plan.

I do admit that I am one of those people who have less fascination with financial management. I spend on a daily basis without keeping track of the expenditures. Now I realized the significance of having a monthly budget plan since we are earning on a monthly basis.

The planning method shared to me by a great mentor is so basic. You do not need to hire a financial planner, as this would only become an addition to your expenses. All you need are envelops! Yes, envelops each labeled with the household expenses like food, house amortization, electric bills, water bills, education, transportation allowance, groceries, etc., and the most important but the often-neglected part of the budget, savings!

If you need money to spend for the food, get it from the food envelop; pay bills from the bills envelop, and so on. If one envelop becomes empty, and the payday is yet to come, you are spending more than the budget! Squeezing a portion of another envelop not intended to the specified item would lessen the amount set aside for that need, which leads to spending a little less than the budget. This would gradually help you keep track of your spending (and overspending); and guide you in preparing for the next monthly budget.

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