Final answer:
Managing a household budget requires assessing and potentially cutting non-essential items like a Netflix subscription to save money and increasing discretionary income, which could help achieve financial goals faster.
Step-by-step explanation:
Understanding how to manage a household budget is crucial to achieving financial goals, such as purchasing a new television. By assessing your current subscriptions, like your Netflix subscription, and looking for ways to cut costs in areas such as grocery shopping, you can increase your discretionary income. When you plan your household expenses, you may identify that you have an opportunity to redirect funds from non-essential items like entertainment subscriptions or choose more cost-effective shopping options.
If you're looking to save money, evaluating your budget can lead to significant savings. For example, if you budgeted $200 a month for groceries and manage to save $90 by shopping at a more affordable store or buying cheaper brands, plus cancel your Netflix subscription, you could potentially double your discretionary income.
Lastly, keep in mind technological advancements such as free Internet-based calling and video calling that can provide alternatives to traditional communication methods, potentially reducing your household expenditure.