Do you know how to make a family budget? …
All people want their finances to be healthy.
That means spending less, learning about your spending habits and making changes to improve them.
Maybe these changes are because you want to get out of a debt or maybe you have a savings goal in mind for the future. GET HELP to negotiate down your debts and consolidate them into a single monthly payment.
Without realizing it, many families get into financial problems. And they end up on lists like those of the ASNEF with a record of non-payment of some credit.
For this it is necessary to create a family budget, I know it may seem difficult, even frightening, but if you follow the keys that I will give you today, you will see that it is not so difficult.
Why do you need a family budget?
No one is born with money management skills.
When we are adults it is expected that we can manage our money effectively, however, few are the ones who teach you how to do it.
That is why we experience habitual emotions in people when they do not know how to do something well, for example:
This ability to manage money must be learned … And it’s never too late to start!
Creating a family budget will help you use the money you have wisely since you can know exactly where you are going. Changing your address if necessary.
A person who knows how to manage their money is stress-free and also knows how to:
- Pay your subsistence expenses
- Keep your debts at a manageable level
- Save for an emergency fund and future goals
- Keep stress-free from the anxiety of lack of money
Managing money properly does not mean having more income, it means making the most of the money you already have.
That said, let’s continue to know the keys to making a good family budget …
How to make a family budget that helps me save money every month? Tricks and tips to make yours. Click to tweet
The keys to a good family budget
Creating a budget with a template can help you feel more in control of your finances and save money for your goals.
Next, I will describe the keys to follow so they can help you create a budget.
Record your net income
The first thing you should do in creating a budget is to identify the amount of money you have.
Keep in mind, it’s easy to overestimate what you can afford if you think of your total income as what you have to spend.
Remember to subtract your deductions such as social security, income tax, and other taxes. Your final payment after deductions is called net income and that is the number you must enter on your budget sheet.
Tip: If you have an ability or talent, you can find a way to supplement your income, such as becoming a freelancer and working from home.
This can be useful if you ever lose your job and at the same time increase your source of savings.
Record all your expenses
You need to track and categorize your expenses so you know where you can make adjustments.
It will also help you identify where you are spending the most money and where it might be easier to reduce it.
Begin by listing all domestic expenses. These are regular monthly bills such as rent or mortgage, electricity, telephone, cable connection, Internet.
Then record the daily expenses. These are the ones you usually do during the month such as groceries, clothing, meals outside the home, beauty or hairdressing among others.
If you have children, write down all the expenses they generate, such as school supplies, clothing, school lunch, medical expenses, among others.
Transportation expenses such as vehicle fees, gasoline, repairs, etc.
Health expenses such as doctor or dentist, medications, etc.
It also records other expenses such as insurance, education, charity, savings, obligations or debts, etc.
In our budget sheet, you can see all these expenses reflected, ready for you to fill them out.
Set your goals
Before you begin to filter the information you’ve tracked, make a list of all the financial goals you want to achieve in the short and long term.
The short-term objectives should not last more than a year.
Long-term goals, such as saving for retirement or your child’s education, can take years.
Remember, your goals do not have to be set in stone, but identifying your priorities before you start planning a budget will help you.
For example, it may be easier to cut spending if you know that your short-term goal is to reduce your credit card debt.
The best tips to create a family budget that will help you save a lot of money every month. Click to tweet
Make a plan
Use the expenses you have collected to help you realize what you will spend in the coming months.
With your fixed expenses, that is, those that you can not cut. You can predict quite accurately how much you will have to budget.
Use your past spending habits as a guide when trying to predict your variable expenses.
You can choose to analyze your expenses even more, between the things you need to have and the things you want to have.
For example, if you drive to work every day, gasoline probably counts as a necessity.
However, a monthly music subscription, can you count it as a necessity?
This difference becomes important when it is time to make adjustments.
Adjust your habits if necessary
Once you have done all this, you have everything you need to start completing your budget.
After locating your income and expenses, you can start to see how much money you have left or cut costs so you have money to meet your goals.
Analyze which are the expenses that you can reduce or cut directly, such as going out to eat out, on movie Wednesdays, Friday with friends, etc.
In summary, the purpose is to cut the expenses that are not of necessity, and that therefore allows you to have more free money for the savings that you have set in the beginning.
You can also reduce some expenses such as learn some tricks to save electricity and reduce water consumption.
These savings methods will help you considerably reduce your bills.
Sometimes the smallest expenses are responsible for the flight of your money. When you add them you will be surprised.
Make a new budget with the adjustments applied
The purpose of creating a budget is to be able to achieve the goal you have set, either creating savings for a specific purpose.
Once you have adjusted all your expenses, proceed to make a new budget with your new adjustments, it is important to check your budget regularly to make sure you are on track.
Expenses may increase or you have simply reached your plan and want to start a new one.