Utilities, such as electricity, gas, and water.Rent/Mortgage (make sure to include any insurance).Common categories include: X Research source This will help you when you go to input your expenses and when you want to look through them for a specific expenditure. X Expert Source Samantha Gorelick, CFP®įinancial Planner Expert Interview. Each entry should go into a category so you can easily see how much you spend on monthly and yearly bills, regular essentials, and discretionary costs. X Research sourceĬategorize your expenses. You can also use electronic budgeting software, such as, which will help you keep track of your spending.They will need to be customized for your specific needs but will be easier than starting from scratch. Many spreadsheet programs come with a built-in template for calculating a household budget.However, they are not free, so you will need to invest a little bit of money in order to use one of them. This type of program also has additional features that may come in handy for formulating budget, such as savings tools. Calculations in a simple accounting program, such as Quicken, are virtually automated, as they are made for this type of project.You can find sample budget worksheets from Kiplinger here.You can use a simple pen and paper but it is much easier to use a spreadsheet program or a simple accounting program if you have access to one. Decide how you will document your household spending, earnings, and budget.