Creating a budget for your family could be one of the best things you do for both yourself and your family.
Why? Because if your family budgeting is realistic and you stick to it – and I mean really stick to it – then it is the basis of setting yourself and your family up financially for life.
But why on earth would I waste time setting up a family budget I hear you cry!
Firstly let’s have a look at the benefits of family budgeting
Benefits of Family Budgeting
If you think about it there are many benefits to creating a family budget
Here are some, I bet you can think of more
– Family budgeting will be the springboard towards maximizing your earnings
– It will help you save for the future
– Family budgeting will help reduce personal stress and increase harmony within the family
– It will give you a feeling of satisfaction that you have spent your money well
– It sets a fantastic example to your children
I could genuinely note down many more benefits to the ones I have listed here, so I hope you can appreciate why you might spend the time on creating a family budget
Now some tips on how to do it
How To Start A Family Budget
The best way to get started on a family budget is to assume a healthy financial perspective.
Although a budget is intended for the future, you need to realize that it is based on your spending habits now.
Before starting on creating a budget, analyze where your money comes and how you spend it.
Keeping track of your income and expenses will give you a better glimpse as to how you’d be able to create a realistic budget plan.
Here are a few pointers you might want to consider to create a realistic budget plan for the family:
– your income
– how much you are able to set aside for savings
– your household expenses
– do you always overspend each month?
– do you openly talk with your partner regarding money issues?
Once you have looked into these various factors, then you will have a better idea on how to approach your budget plan.
Regaining Control Over Your Finances
By properly organizing your family’s spending habits in accordance with your family’s income, you will become more organized in your budgeting process.
Take note of all bills and even the tiniest expenses such as a bottle of shampoo or a bar of soap. Unless you do that, you will never be able to create an efficient plan that will cover all of your expenses.
Then, create a sample budget plan.
For this stage to effectively work, you need to discuss it with the rest of the family members so they can be aware.
Making them more aware of the need to budget their expenses well, they can take their own personal steps that will help alleviate money problems within the family.
Once you have finalized the family budget plan, you need to write it down. This will enable you to have something to consult from time to time.
Also, this will remind you of what your spending priorities are.
When your family has adjusted to your budget plan, you can plan your budget for the coming year.
Creating an advanced family budget will enable you to cope with seasons that require a lot of expenses such as holidays or for the children’s schooling.
Family budgeting is not an easy process to start up, but once you have, and once it becomes part of your weekly or monthly routine you will have taken the first steps towards controlling your finances, and perhaps more importantly demonstrated to your children the first steps of effective money management