Personal budget

  • Marty Zanen
  • Step-by-step plan
  • 19 August 2019
  • Edited 30 June 2023
  • 3 min
  • Managing and growing
  • Finance

Do you know how much money you need a month to cover your expenses? List your income and expenditures in your own personal budget. This will give you a better financial overview. You will always be aware of your expenditures. Your personal budget is part of your financial plan.

Do you know how much money you need a month to cover your expenses? List your income and expenditures in your own personal budget. This will give you a better financial overview. You will always aware of your expenditures. Your personal budget is part of your financial plan.

Create your personal budget in four steps

1. Fixed and variable expenses

Make an overview of your fixed and variable expenses. Fixed expenses are recurring monthly, quarterly, or annual expenses. These include insurance, rent, mortgage payments, and subscriptions. Expenses related to your disability insurance, pension, and contribution under the Healthcare Insurance Act are also all included in your fixed expenses.

Variable expenses are costs you do not pay at any particular time. Including things such as costs related to holidays, clothing, leisure time, or replacing household appliances.

2. Average costs per month

Calculate your monthly expenses. Divide the costs of an annual subscription by 12. Take the average of your monthly expenses for clothing and food. Check your monthly expenses for petrol and/or travel by public transport. Finally, estimate your monthly expenses for gifts, going out, and so on.

3. Net salary

If you have a job (part-time or full-time), are paid an allowance for volunteer work, or receive some other type of income, you should put this income in the ‘Net salary’ column. This also includes allowances from the Netherlands Tax Administration (Belastingdienst).

Note: Allowances from the Netherlands Tax Administration depend on your total income. If the revenues from your business increase, your allowances may be reduced, or even discontinued altogether. Your partner’s income is also considered in determining the amounts of the allowances. Your personal assets are considered in determining whether you are eligible for a healthcare allowance, rent allowance, and child-related budget (kindgebonden budget).

4. Calculate your personal budget

List your monthly income and expenditures, showing you the amount you need per month to cover your essentials. You should also use this amount in your financial plan.

Tip: The Dutch National Institute for Budget Information (NIBUD) provides a step-by-stp guide to drafting a personal budget (in Dutch) and how to remain within this budget.

Example of personal budget per month

Income Amount in euros
Net wage1,000
Holiday pay 79
End-of-year bonus 79
Net wage/partner’s benefits  
Partner’s holiday pay  
Partner’s end-of-year bonus  
Volunteer allowance 50
Child allowance 73
Healthcare allowance 100
Rent allowance 270
Childcare allowance  
Child-related budget 450
Tax refund 160
Total income 2,261
Fixed expenses Amount in euros
Mortgage/rent 700
Energy, light, water 150
Pension contributions 100
Insurance 100
Subscriptions 50
Childcare  
Phone, TV and internet 65
Contributions 20
Municipal taxes 60
TOTAL fixed expenses 1,345
Household and other expenses Amount in euros
Food 400
Personal care, hairdresser 50
Clothing and shoes 100
Leisure time, going out, gifts 150
Holidays 300
Money set aside for household appliances 50
Petrol 80
Costs related to garden and inventory 50
TOTAL household and other expenses 1,180

Calculate minimum income needed from your business for your personal budget:

ItemIncome in eurosCosts and expenses in euros
Total income2,261 
Total fixed costs -/- 1,345
Total household and other costs -/- 1,180
Minimum income from business264 

Video: Make a financial plan

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