Planning a Family Budget

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Planning a family budget can be difficult, but it doesn’t have to be.   One frustrating thing is  to see how hard you work for your money, then try to do a budget and ultimately realizing that one wrong purchase, could actually set back the entire plan.  Nowadays, budgeting is practically a necessity, if you want to keep your financial situation in order.

We have to think about family budgeting in a new light.   It can actually be a great way to keep track of your family’s expenses and help you evaluate the things that you spend the most of your family’s money on.

So, what really is a budget?  A budget is a tool for handling your money and finances by controlling the family’s expenditures and spending habits.  Doing this should ensure that there is enough money to pay for bills, and still ensuring that savings are set aside for future expenses – vacations, or children’s education, or even for retirement.

With a budget in place, you should see the benefits of intelligent spending.  Here are some simple simple steps for preparing a family budget.

1.  Gather three months of your pay stubs and get your average monthly earnings.

2.  Get out three months of your monthly bills.  Do this for the fixed expenses like the rent, phone bill, car payments and other loans that come monthly.   Add them up and get the average. Do the same for other expenses like groceries, and credit card bills.

3.  Evaluate the results of your computations.  Looking at your average monthly earnings against your monthly fixed expenses and other monthly expenses, think of some ways to economize.  Cut back on some items that are somehow unnecessary. (going out to eat, movies, etc.)

4.  Knowing the facts of your income and expenses, develop a family budget and try to stick to this monthly budget.

5.  Now that you have a monthly budget, set up a savings account.  Save up by making regular deposits to this account. Even $25 a week can make a big difference at the end of the year.

6.  Keep track of this monthly family budget to make sure  it is working for you.  Try to fine-tune the “rough edges” of this budget as you go along.

7.  Getting hold of  personal budgeting software or a spreadsheet application to keep record of your budget, will make organizing your expenses very easy.

These are some basic steps in developing and implementing an easy to stick to monthly family budget. Of course each family has diverse needs and wants.  You have the freedom to develop your own monthly family budget, depending on your family’s financial background and needs.  No matter how you do it, just focus on the end result, which is building a savings that leads to a bright and financially stable future for your family.

2 Replies to “Planning a Family Budget”

  1. Been reading for a few days now. This was very good and insightful information. BTW, I like your site design as well. I enjoyed reading it and hopefully you will write more soon. Do you have a newsletter? How do I subscribe to the blog itself?

  2. Thanks for the compliments….we work hard to maintain our site and keep up to date, useful information for the consumer. You can always subscribe to our newsletter using the form on the right…thanks

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