Your Ultimate Guide for Creating a Family Budget

If you’ve decided 2019 is the year you’ll write a budget and stick to it, we can help. Here’s your ultimate guide for creating a family budget that works.

New year, new you. You may join the gym, buy a new recipe book, re-organize your entire home, or refinance student loans. But have you thought to take a look at your finances and budget?

You may have heard the news that Americans today are not that great at budgeting or saving. In fact, studies have found that only 46 percent of Americans have an emergency fund. Knowing that it’s no surprise that the average credit card debt for an American household is more than fifteen hundred dollars.

If you’ve struggled with budgeting and saving in the past, but want to change that all in 2019, we can help. We have some easy tips to help you make a budget and stick to it. Read on for simple ideas on creating a family budget that fits your unique needs.

Pick Your System – How Will You Track Your Budget?

Before you begin creating a family budget, you need to decide on the tools you’ll use to do so. You can use pen and paper, but you should have a dedicated notebook and you will need to be especially organized. Many people prefer to use a Microsoft Excel spreadsheet.

Today, there are also apps for budgeting. This can be helpful if you want to always have immediate access to your budget. You can do some research to compare different apps – like ynab vs mint – to choose one that’s best for you.

Take Stock of All Your Money – What is Coming in and What is Going Out?

Now it’s time to record some data into your chosen system. Record your monthly total household income. This should be as accurate as possible, but when in doubt, round down so you have a safety net.

Next, record all your monthly expenses, including due dates for bills. This should include your routine costs for living, like rent or mortgage, utilities, and your phone plan. Also include how much you spend on average for gas, groceries, and recreational activities.

Identify Your Goals – Why Are You Creating a Family Budget?

With your income and your expenses recorded, you can get a good idea of what’s leftover. Now that you have calculated your expenses, you can start to make changes to help you meet your financial goals. First, you must figure out what those goals are, and realize that they can change over time.

Financial goals usually involve paying off debt or saving for something specific. You may want to pay off your student loans now and then save for the ultimate family getaway. Budgeting requires some sacrifice, so keep your goals in mind as you work to create a plan around your income and monthly expenses.

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Beyond the Budget – Working and Saving Money as a Parent

Creating a family budget is one part of creating a life of stability and comfort. Browse our blog for more tips and guidance on managing your finances and working while raising a family. You can find tips on saving money while shopping, how to save money while staying fashionable, and more.

Published: 2019-01-29 15:18:54