Koduseelarve

Koduseelarve, often translated as household budget, is a plan that documents expected income and planned expenditures for a household over a period, usually a month. It serves to ensure that spending matches income, to build savings, and to reduce debt, while maintaining enough funds for emergencies and goals. It is used by households of all sizes and can be drawn up by individuals, couples, or families.

A typical koduseelarve includes: income sources (salary, benefits, passive income), fixed expenses (mortgage or rent, utilities, insurance, loan payments), variable expenses (food, transport, clothing, entertainment), savings and debt repayments, and an emergency fund.

The process usually involves tracking current spending, projecting income, setting short- and long-term financial goals, and allocating funds to categories. The budget is then implemented and reviewed regularly—often monthly—with adjustments for actual spending and changing circumstances.

Several budgeting approaches are common, such as zero-based budgeting, where every euro is assigned to a category, and the 50/30/20 rule, which designates 50% to needs, 30% to wants, and 20% to savings and debt repayment. Digital tools, spreadsheets, and budgeting apps can facilitate data entry and monitoring.

Benefits include improved financial awareness, better control over expenses, enhanced savings, and greater readiness for unforeseen costs. Challenges may include irregular income, underestimating expenses, and the tendency to adjust budgets to short-term desires.