Your household functions like a business. You have receipts and expenditures. Imagine you are the Managing Director of this firm. At the end of the year ideally you will have received more than you have paid out - and have money left over with which to fulfill a dream for example or to be able to save for something in particular.
Sounds good! But for that you need to know how much you spend and on what. Thereby seeing at a glance what you have left over from your income each month. And you can quickly see where you could perhaps save even more. Thus you will have the best chance of making a profit out of your household budget by year end - just like in a successful business.
Setting the household budget: Where does your money go?
When you set your household budget it is important that all the information is truthful. Only then can you use the data. Even if you plan or wish to spend less on clothes or leisure activities. In the household budget you should insert the actual amounts. When some individual amounts vary greatly, you can take for example an average over the last six months.
To calculate the household budget list your most important income and expenditure separately. Firstly, work out your total income from salary, premiums, pension rights and assets. Then list down all your costs carefully including the various insurance policies, living costs, tax, household, health, travel and leisure activities.
If you don’t want to list everything individually there are some helpful tools. Among other things the Online Budget calculator of the Swiss Advisory Council. In this you can enter all your income and expenditures. Whilst you input the information it automatically calculates your household budget for you.