How to prepare a household budget that your family will actually use

A budget is not a punishment. It is a plan for where the family's money goes, made in advance instead of discovered at the end of the month. The method below works for most families, whatever the income.

1. Start from real numbers

Take the last three months of bank and credit card statements. Estimates are usually too low; statements are not. Your bank's website, under the supervision of the Bank of Israel, lets you download statements.

2. List all income

Salaries, self-employed income, allowances from Bituach Leumi such as child allowance, rent you receive, and any other regular income. Use what actually reaches the account, after deductions.

3. Sort the spending

Use a few simple groups:

• Fixed: rent or mortgage, arnona, insurance, phone and internet, kindergarten and school.
• Variable: groceries, fuel and transport, health, clothing.
• Yearly and seasonal: holidays, school supplies, car licence and insurance, gifts, holidays abroad.
• Saving and debt: savings, loan repayments.

4. Plan the yearly costs monthly

The yearly costs are what usually breaks a budget. Add them up for the year, divide by twelve, and set that amount aside every month.

5. Agree on limits together

Decide as a family how much goes to each group. Start with the categories where you have the most choice, such as eating out, subscriptions and shopping.

6. Review once a month

Pick a fixed day. Compare the plan with what really happened, adjust, and move on. A budget that is reviewed monthly works better than a perfect budget that nobody opens.

If money is tight

If you can't cover the basics, contact your local authority's social services department, and check the rights you may be entitled to. Getting help early helps.

How Woofi fits in

Woofi reads your statements, sorts the spending into categories and shows month-to-month changes, so the numbers for your budget are already there. The decisions stay with you.