Reviewing Your Monthly Budget in a Digital Household Budget Book: Step-by-Step Guide With an Evaluation Checklist

What does a monthly budget review in a digital household budget book mean?

A monthly budget review in a digital household budget book means that at the end of the month you systematically check all income and expenses, compare them with your planned budget, flag deviations, and derive simple rules and adjustments for the next month.

Example: Monthly planned vs. actual overview in a household budget book

The sample table below shows a typical monthly overview. On the left is the planned budget (plan). On the right are the actual actual values (what you really spent or received). The variance shows whether you are above or below your plan.

Basics: What you should know before reviewing

Before you review your budget, it helps to know a few terms:

• Household budget book: An overview of all income and expenses. Digitally, for example, in an app like MyMicroBalance.
• Budget: A plan for how much money you want to spend in a month for specific areas. For example, 350 euros for groceries.
• Fixed costs: Regular expenses that are usually the same amount. For example, rent or insurance.
• Variable expenses: Fluctuating expenses. For example, shopping, leisure, or clothing.
• Savings / buffer: Money you intentionally do not spend. For example, for reserves or unexpected bills.

Step by step: Reviewing your monthly budget in a digital household budget book

With this simple routine, you turn your household budget book into a real control tool. The steps can be implemented in most digital household budget books, for example in MyMicroBalance.

Step 1: Complete transactions at the end of the month

In the first step, make sure all data is complete and correct.

• Open your digital household budget book and select the month you want to review.
• Check whether all income has been recorded (for example salary, side jobs, other regular income).
• Check whether all expenses have been recorded (card payments, direct debits, cash payments).
• Review the categories: Are the assignments correct? For example: supermarket → groceries, not leisure.
• Add or correct missing or incorrectly categorized transactions.

Step 2: Compare planned budget and actual spending by category

Now you compare your plan with reality.

• Write down or review your planned budget per category (for example as in the table above).
• Pull the actual spending per category from your household budget book.
• Calculate the variance: actual spending minus planned budget.
• Flag categories with significant variances. For example anything above +10% or above a euro amount you set.
• Pay special attention to categories that regularly exceed the planned budget.

Step 3: Comment on notable categories and set rules

In the next step, think about why variances occurred and derive simple rules for next month.

• Select all categories where you are clearly over budget.
• Write a short note for each of these categories directly in the household budget book or separately. For example:
  • “Groceries +60 euros: more impulse buys, no weekly plan.”
  • “Leisure +60 euros: two additional restaurant visits.”
• Derive a clear rule for next month from each note. For example:
  • “Only one big grocery run per week with a list.”
  • “At most two restaurant visits per month.”
• If possible, adjust the categories and limits in the digital household budget book. Many programs like MyMicroBalance allow you to set budget limits per category.

Step 4: Review your savings and buffer rate

The savings rate is the share of your income you set aside. The buffer rate is the money left over after all expenses, even if it is not saved for a specific purpose.

• Calculate your net income for the month (all income combined).
• Calculate your total expenses (fixed costs + variable expenses).
• Check how much you had planned for savings and reserves (planned) and how much you actually set aside (actual).
• If possible, note simple rates. For example:
  • “Savings: 10% of income planned, 8% achieved.”
  • “Buffer: 200 euros planned, 180 euros achieved.”
• Consider whether you want to adjust your savings or buffer goals next month. For example, choose smaller, realistic steps.

Step 5: Write a short monthly summary and carry it over to the next month

Finally, briefly capture your key takeaways. This turns your review into a repeatable routine.

• Answer three questions for yourself:
  • What went well? (For example: “Fixed costs stable, no unplanned large expenses.”)
  • What didn’t go well? (For example: “Groceries and leisure clearly over budget.”)
  • What will I change next month? (For example: “Weekly meal plan, limit restaurant visits.”)
• Turn this into a short monthly summary of 3–5 sentences.
• Enter your new budget limits and rules in the digital household budget book. For example, in the budget settings of software like MyMicroBalance.
• Repeat this routine every month. Over time, you’ll develop a personal pattern that shows you where you can improve.

Core review checklist: Get through month-end in 5 blocks

This checklist helps you review your monthly budget step by step. Use it as a fixed process, for example on the last or first day of the month.

1. Income check

• Is all income for the month recorded?
• Do the amounts match your bank statements?
• Is there irregular income (bonus, side job) that you want to flag?
• How high is your total net income this month?

2. Fixed-cost check

• Are all regular fixed costs entered in the household budget book (rent, electricity, insurance, etc.)?
• Are fixed costs within the expected range, or were there increases?
• Are there one-time special payments you should flag as fixed costs?
• What percentage of your income goes to fixed costs?

3. Analysis of variable expenses

• Are all variable expenses categorized correctly (groceries, transportation, leisure, clothing, etc.)?
• In which 2–3 categories were you the most over budget?
• In which categories were you under budget?
• Which of these variances are one-time, and which have already been recurring for several months?

4. Savings and buffer rate

• How much money did you plan as savings or reserves?
• How much money did you actually set aside?
• Is there a positive buffer left at the end of the month (income minus expenses)?
• Do you want to keep, lower, or increase your savings goals next month?

5. Monthly summary and adjustment for next month

• Write down the three most important insights from this month.
• Define a maximum of three concrete rules or habits for next month.
• Adjust the budget amounts in your digital household budget book (for example in MyMicroBalance).
• Set a fixed date for the next monthly review.

How to turn the review into a routine

The simpler your method, the more likely you are to stick with it. Therefore, always use the same steps, the same checklist, and ideally the same tool. A digital household budget book like MyMicroBalance helps you clearly collect your data and track progress over multiple months. That way, a one-time review becomes an ongoing routine that gives you more clarity over your finances.