Articles & Tools

Managing a Budget: Living on a Budget

A family budget is the cornerstone of a balanced family economy. If you don’t have one already, it’s time to build it. Is there a budget? Learn how to track your expenses and income. The “drawing” of Paamonim can help in the craft.

A family budget is the cornerstone of a balanced family economy. If you don’t have one yet, it’s time to build it. Assuming you’ve already built a budget, after looking at your household’s fixed income and expenses, it’s time to take a breath and learn how to manage your budget on an ongoing basis.

True, this is not a simple task that requires learning and perseverance, but despite the difficulty, it is worth remembering that the return on the effort is guaranteed and after you internalize the method there will be a reward for your labor, you will feel immense satisfaction, and more importantly: you will gain control over the management of your household.

Quiet, take notes!

The secret to maintaining the family budget is an orderly process of recording all household expenses and income, as well as daily monitoring and monitoring of them. Only orderly registration can lead to control and control of expenses and revenues according to the budget. There are no shortcuts.

How do I manage budget registration?

Through the registry. Utilities for registration, tracking and control developed in Paamonim You can make monthly tracking convenient and efficient.

1. Division of expenses into categories

For registration and tracking, we will divide family expenses into 3 categories:

  1. Fixed monthly expenses: expenses that are spent every month, over the entire budget year and in identical amounts (for example: mortgage, newspaper subscription, standing order for savings).
  2. Periodic expenses: expenses that go out once every few months (and at least once a year) in fixed or variable amounts, but for which payment is not made every month (for example: electricity charged once every two months or a test for a car paid once a year).
  3. Current expenses: Expenses that go out each month, but in varying amounts (example: food and fuel).

2. How to register

During the month: Every expense from the category of “current expenses” must be listed in the table designated for this purpose, as well as any expenditure belonging to the category of “periodic expenses”.

At the end of the month: Write down the amounts of “fixed monthly expenses” and debt restructuring.

3. Manage the monthly tracking in each category

To follow up, we’ll explain how each category should be used.

a. Fixed monthly expenses

Fixed monthly expenses must be paid each month. Although these expenses are relatively fixed, you should make sure at the end of each month that there is a match between the fixed expenses and debt payments listed on the budget form, and what was actually paid.

In the registry, in the “debts” table and in the “fixed monthly expenses” table, the planned budget must be recorded, and at the end of the month check and calculate whether there were differences.

In. Periodic expenses

Part of our expenses basket is built on items that are not billed every month. For example, water and electricity payments, vacations and car testing.

One of the difficulties facing a family is how to manage the house according to a budget for expenses that are not regularly paid each month. When the charge arrives, the bank does not always allow the large expense or the “unexpected” payment increases the deficit in the bank account.

For these expenses, money must be saved in certain months, for the benefit of future expenditure months.

To solve this problem, you need to manage each section of the “periodic expenses” category separately, and each month that we don’t spend money in a particular section, keep the money aside so that you can use it when the periodic expense arrives.

In the “Periodic expenses” category, in the registry, you must record each and every expense during the month, and at the end of the month check and calculate whether there are differences between the budget and what you actually spent.

More information on the implementation of this registration method can be found in the “Registration Usage Guidelines” at the beginning of the registration booklet.

Gimel. Current expenses

The last category includes “current expenses”, that is, expenses that are daily. The budget for these expenses will be managed as a single unit, and each expenditure will be subtracted from the total budget amount for this category.

This way, each month you can allow yourself flexibility between expenses for food, fuel and the other ongoing expenses you need.

In the listing, in the “current expenses” category, you must record each and every expense during the month, and make sure that you do not exceed the monthly budget.


Expenses and obligations:

  • “Fixed monthly expenses”, “debts”: registration and monitoring should be carried out only once a month.
  • “Periodic expenses”: Every expense must be tracked, for each and every section.
  • “Current expenses”: each expense should be tracked, and subtracted from the total amount allocated to this category.


Revenue should be considered each month, according to the established budget. [

Each month you should write down the revenue received, and once a quarter check if you are indeed meeting the set budget. If you find that revenue was higher or lower than expected, you’ll need to update your budget accordingly.

Every month has an end of the month

At the end of each month, you should examine how you conduct yourself in relation to the budget you have built. Calculate the amount you spent during the month for each item and compare it to your budget.

After comparing, check for items that require a budget update. If so, do it according to the expenses you actually had. When updating, remember to make sure you’re on budget.

After a month or two of testing your ability to meet your budget, you can move on to the next stage, where you will update your budget and learn how you can settle debts or open savings.

The person on the budget will win

So far, we have dealt extensively with setting goals, but it is important to understand that in order to achieve these goals, you will need to show high personal responsibility and commitment and bring about a significant change in your financial conduct. Sometimes this stage seems intimidating, annoying and impossible to implement. But our experience proves otherwise: it is quite possible. Promise.

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