Are your finances getting a little out of hand? Are you having a hard time keeping up with when the bills are due? It’s time to sit down and create a family budget. Before you get started, gather all of your bills together. You’ll need to record all of your expenses along with all income to create a budget plan that works for your family. Include all expenses even if it’s something you pay annually or semi-annually.
How To Create Your Family Budget
Once you have collected the necessary paperwork, here are four tips to help you create a family budget:
1. Determine your goals. Do you want to pay off your debts, your mortgage early or do you need to do home repairs? Do you need to start saving for retirement? Set a financial goal so you have something to work toward and it will help you view your finances from a different perspective.
2. Determine where your money goes each payday. For example, next to each payday record which bills to pay and how much of your income it will take. Include gas, groceries, savings and any other weekly expense you have even if it’s a few dollars for your morning cup of coffee.
3. Separate your priorities from luxuries. Start with your home and work down to the things you’re paying for that you don’t really need. Then use this information to look for ways to save money.
4. Keep it simple. If your family budget plan is too complicated, you’ll get frustrated and give up before you have a chance to make a difference. Therefore, choose a method of recording your budget plan that is simple and easy to use, even if it’s pen and paper.
Once you have the family budget in place, stick to your plan. The more you deviate from it, the longer it will take you to reach your financial goals. Make sure you and your partner are on the same page and it will be easier for you to stick to the budget and save for your future.
It’s the trying to figure out where everything goes. It’s so important to track it all honestly!
We recently started budgeting for home renovations & won’t be renovating our living room until we have the money saved up for most of it. We know it will be a costly reno since we are planning on adding hardwood, built-ins, a propane fireplace, new blinds, & paint.
I always think it’s best before buying anything to ask yourself do I really need it or just want it. It does help. I agree that you need to budget and see where your money goes and that’s only possible if you make notes of what you’re spending. And do watch your credit card, it’s so easy to not realise how much you’ve spent until the bill arrives. I found it handy to use more cash, that way I even saw my money disappear!
Great tips! Thanks for sharing!
I think separating priorities from luxuries is a key one.
My oldest son has started his first job over the summer and we are currently teaching him these lessons. We have found that he finds a lot of motivation in having his budget written down.
I definitely need to work on how much I’m spending each month on things like groceries. I don’t keep track of that very well and could do better with with that.
Thanks for the tips. I could definitely use some budget organization.
We have recently started to stick to our budget. It can be so easy to lose track of where your money goes, especially with kids. Your tips are really good and thank you for sharing them.
Yes, it’s definitely easy to loose track and especially with any emergency situations that can occur at home.
The tips will help with my budgeting
I dislike budgeting – It makes me aware of where where money is going, and makes it harder to spend frivolously.. lol. Great tips, though. Thank you!
I’m terrible because I don’t do a budget but I know I should.
Where does the money go? Tracking it is key and then questioning wants and needs like you explained.