Tips to become effective home budget planner

Finally, I have decided to discuss how you can become an effective home budget planner. I have been planning to write this post for quite a long time. This post is going to set up the backbone of your financial success because making a good budget is very important for every person irrespective of their age and profession.

The budgeting software in the brain

Actually, nobody needs to learn how to do a budget because he is anyway doing it unconsciously. You may think how everybody on earth is doing a budget, and if everybody is doing it anyway then what is the point of writing this article?

Well, Psychology of human mind is such that when you do something from your subconscious mind, it becomes prone to accidents unless your subconscious is highly trained to do it perfectly. This post will help you train your subconscious mind to do a budget in the right way. After reading this post you will be well versed in the concepts of a budget.

Now, I am going to tell you how you already know how to do a budget even if you think you do not know it. Remind the day when you bought your first computer or an android phone. You might have fired up Amazon in your browser and started searching your desired gadget, or you had visited local Gadget outlet to bring home your LED TV. Unless you are a rich guy and expense never bothered you, you have certainly made a mental note about the maximum amount you will burn to get hands on your desired laptop. You did a little calculation at the back of your mind while strolling at the community park to figure out the maximum amount that you can safely spare without causing your monthly bill overdue.

Every time you do this mental calculation you do a budget. Yes, It is that simple, but simplicity does not always make you a good home budget planer. You already know the limitation of doing a budget in the mentally, but after reading this post you will learn to make any budget in the right way.

Doing the right budget is very important footsteps towards success in business. You may say that you do not run a business then why do you need a budget. The answer is that a good budget software in your brain will help you to keep your finance under control.

Qualities of a home budget planner

You have understood how you already making a budget without even knowing it, and now you want to understand how to make a budget that really works.

Before we begin understanding the concept of budgeting in depth, I will tell you about the qualities which makes a good budget planner. I have listed down the five qualities that make a person good home budget planner even without taking any help from digital budget software.

  1. Understands the source of income and expenses.
  2. Deeply analyzes past trends of income and expense.
  3. Foresees future income and expense.
  4. Regularly does budget variance analysis.
  5. Proactive in taking measures in accordance with the above four points.
  6. Must have the basic understanding of accounting

These qualities need to be developed inside by yourself. Somebody can teach you how to make a budget in an effective way, but nobody can stick those good habits in your mind unless you are ready to bring those changes within yourself.

Features of a good budget

A budget worksheet planner comes to your rescue if you are struggling with your budget. A good home budget planner can certainly make your budget works. A well-crafted budget should take the following four things into its consideration:

  • The estimated expense and income for the period
  • The actual expense and income for the period
  • The revised estimate for the period
  • Variance analysis between estimated budget and actual expenditure and income.

Your budget worksheet should contain fields for above four items. Otherwise, your budget will not be effective enough to control and monitor your finance.

Tips to make an effective budget

A budget is an estimated amount of income and expenditure. The estimate is done taking past actual expenditures and income into consideration along with any future events which may materially affect the estimate.

Here are some rules that you must follow whenever you plan your home’s budget.

  • Write down your budget on paper. Do not keep it in your brain.
  • Always use actual income and expense of past periods as the stepping stone towards an effective budget.
  • Revise your budget whenever necessary. The estimated figure should be revised on a month to month basis if necessary.
  • Do variance analysis to identify unusual variance and take steps to mitigate the same.

I have discussed the effective ways of making a budget which is very simple and easy to implement. Please feel free to write your thoughts and suggestions in the comment section.


I am Koushik Das, and I live in Kolkata, India. I am a passionate personal finance blogger at
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