How does one budget their household finance?

Answer 1

"When creating a household budget, the first step is to account for all available sources of income each month. The second step is to make a list of recurring monthly expenses as well as foreseeable expenditures (such as possible car repairs or medical expenses). Don't forget to set aside money for vacations or large purchases if desired. Lastly, write down the cost of each expense listed. Add them up. Subtract this amount from the available money to see whether you are operating your household on a surplus or a deficit."