What is the point in using a monthly household budget template to save money? It seems that, if people can do it themselves, they can save money. This sounds good, and it is. The problem is, that most people are not experts on the financial aspects of their finances and they make mistakes.
A monthly household budget template helps to prevent these mistakes. When all the facts are available at your finger tips, there is no reason why you cannot use this tool to create the monthly household budget you want. However, even after creating one, there are some mistakes that are made that cost us hundreds and thousands of pounds in unnecessary expenditure.
This is understandable _ most people don't have access to the correct financial data. The fact is that many people make the mistake of comparing a financial statement with their resume. In other words, they look at the numbers side by side and see if they add up to the amount they expect to earn for that month. Sadly, they miss the fact that a financial statement is a comparison of liabilities against revenue.
For example, let us take the example of John. John lives in a rented flat. He has two children and a mortgage loan on his flat. One of his monthly household budget figures shows him making 20 monthly payments to the landlord. However, when he looks at his bank statement, he sees that he has some money in savings because he stopped making his mortgage payment.
There is more going on here than meets the eye. He actually has money tied up in assets that do not earn him any income. His monthly household budget does not include any of this data. Instead, he has to make an honest assessment of what he can spend on what, and how much he can take out of his pension and life insurance to cover his children's education costs.
If John were to calculate his budget this way, he would find that he spends a lot more on things that do not contribute to his wealth. On the other hand, if he had included all the assets that earn him any income, then he would see that he has a very small net worth. So, is it fair to say that the government's monthly household budget template is fairer to the common man? Obviously, not.
Many households in the United Kingdom do not have an income that is sufficient to allow them to pay off their mortgages and other debts. As such, they are living pay check to pay check. Some of these households may be rather poor, but they are also very aware that there is something better out there.
The thing is, they would never have taken the time to look into a free UK monthly household budget template. Without it, they would most likely be living paycheck to paycheck, with nothing left over at the end of the month. This would not be healthy for any household, whether rich or poor. It is no wonder that many UK citizens are so confused about their financial position!
There is a great deal of misunderstanding that surrounds this topic. Many people assume that everybody in a household needs to have a paycheck. This is simply not true. Indeed, many UK households only have one income. They live pay check to pay check.
What does this mean? Suppose a couple lives in a two_bedroom flat. They get a pay check from the government, which covers the mortgage. Then, there are the kids, who each have their own after school care allowance. The government will cover part of the costs of the kids' care.
So, the question here becomes: how much money does the family actually need to survive? If you looked at all the households in the UK, you would realize that there is no common standard. Each family's needs are different. Of course, you would have a pretty good idea about how much money each family needs. However, in reality, this kind of calculation is usually very difficult to do.
Fortunately, you can now use a monthly household budget template to calculate your family's monthly requirements. All you need to do is fill out the blanks and the software will generate a perfectly fitting financial template for you. Then, you just have to follow the instructions, customize it according to your needs and print it off. It truly is an ideal way to get your finances under control.