Family Budgeting and Finance Tips
Creating a budget may seem very time consuming and not the ideal way to spend an evening. It actually can be very simple and still include the necessary information to get your finances in order. In basic terms all it needs to show is how much money is coming into the household and how much is going out. You can choose to break this down anyway you would like but there are some really easy ways to complete this task quickly and effectively.
First you will want to decide why it is necessary for a budget. Does it always seem like there is never enough money at the end of the month? Decide what you hope to accomplish when creating your budget. Maybe you would like to pay down some debt or you really would like to build your savings account for those rainy days.
The next step may seem like the most complicated but you will need to record every purchase that is made. This will really give you a clear understanding of how you are spending your money. Many people don’t seem to know where all their money goes until they write it all down and are amazed at some of the unnecessary spending they are doing.
Now that you have a clear understanding of where all your money is going, start to create your categories on your budget sheet. You can do this however you would like. You can simply use paper and pencil or get a little more technical with a computer program. Obviously you will need put down all monthly bills but don’t forget other things like groceries and birthday parties. These things take money and defiantly add up. You will also need a column for yourself. Treat yourself or family like its own bill and make sure to pay it every month.
Hold a meeting with your family to go over your reorganization of money. You will need the whole family on board to make it successful. Getting children involved when they are young will set them up for smart financial decisions when they get older. Decide as a family how you are going to achieve the new set of goals and what each family is going to do to contribute. Create weekly meal plans and coordinating grocery lists. It is amazing how much money and time you can save by using grocery coupons and shopping with a list. Create goals for the children and reward them for their perseverance.
Decide with your family what the family’s needs are and what are the wants. Teach your children that food, shelter and clothing are the basic needs in life. That video game that they have been begging for is not a need but something that they want.
Stick with it when times get tough. There are some free apps for your smartphone that can help you with keeping track for your finances. You will be very happy when you reach your financial goal. Not only will you have improved your family’s finances but you will have also improved your communication with your spouse. Finally, don’t forget that you are in control of your money and not the other way around.
Categorised as: Finance