It’s not difficult to manage your family’s money with a budget. It will actually save you a ton of time and headache in the long run! These following simple budgeting tips for families should help you get started and remove some of the guesswork in money management.
7 Simple Budgeting Tips for Families Just Getting Started
1. Write out how much you make
Some people honestly have no idea how much money they make. When you want to start a budget, this is an essential part of it. Writing out how much you make can actually be quite shocking, when you compare it to how much is being spent. This can be done with pen and paper, or using a spreadsheet in Microsoft Excel.
2. Keep track of what is being spent
When you are a beginner budgeting family, it is essential that you know what is being spent. Keeping track of your expenses for a week can help you do this. Saving every receipt and then coming together for a budget meeting at the end of the week will help you do this. I guarantee you will be shocked at what is being spent.
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3. Make a commitment to stick with it
What is the point of going through these budgeting tips for families, if you’re not going to stick with the budget once it’s created? If you go through the trouble of it, at least stick with it. Make a commitment within your family to stick to the budget this year. When everyone is on board, you will see more success.
4. Set financial goals for your family this year
Most people think that a budget will hinder them, but really it will help them in more ways than they can imagine. In fact, you may be more successful when you make goals. An example of a good financial goal might be to have your car paid off by the end of the year. Another financial goal would be to have $5,000 saved by the end of the year.
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5. Pay with cash only
Do you really want to create a budget and have a successful one for this year? Only use cash. When you use cash, you are actually going to be successful. I can tell you that paying with cash will hurt a lot more than not paying with cash. Applying for credit lines and using credit cards will only make your budget harder. Credit isn’t real money, so you cannot include that in your budget.
6. Always discuss purchases
Now, you don’t necessarily have to text your husband about buying a $1 pack of chewing gum. However, if you want to replace the bedding or purchase a new fridge, this should be discussed. The two of you should decide together where any extra money in the budget goes. Avoid going out and buying something just because YOU think it’s warranted.
7. Everyone gets an allowance
A little money in the budget should be set aside for you and your spouse to have what we call “running money”. This is cash on hand for small things, like a cup of coffee with a friend or maybe a new tie. Decide how much everyone gets on each payday, or each month if you prefer. Once that cash is gone, that person can’t spend until they get more money the next payday (or month).
There you have it, simple budgeting tips for families who are just getting started. Do you have any tips to add?