Family Budget Planning

Budgeting is a bad word to some people.  What do you think of when you hear the word budget?  Budgeting is something that every family should do to save for their future.  In family budgeting the main thing that you need to remember is “the money that comes in = the money spent.”  In this way, you will not be living above your means.  You will not put yourself in debt and you will only be able to buy what you can afford.  Of course, this theory may not work when you need to buy a car, house, or other large purchase unless you have saved for your purchase.

To begin creating a budget, it might be helpful to write down the money that you spend for a couple of weeks so that you can more concisely see where your money is spent.  Just this process will open your eyes to all of the ways that your money goes through your fingers.  You will be very surprised to see how the little bits of money add up that you spend every day.

After you have an idea of where your money is spent, it is time for you to start a budget.  Begin by writing down all of the bills that you normally have each month.  This includes your mortgage or rent, utilities like electricity, water, cable, and phone, credit card bills, car payment, other loans, and anything else that you pay by the month.  After you have written down all of your bills, now it is time for you to write down other things that you spend your money on.  This can include tithes, groceries, clothing, medication, sporting fees, or anything else.  Now it is time for the hard thing.  Add all of these numbers to see how much you spend each month.  Then add up your wages and see how the two compare.  Are your expenses more than what you are making?  Are your expenses less than what you bring home?

If you are on the short end of the stick then you need to reevaluate your expenses.  See where you can cut expenses.  Do you have to eat out three times a week?  Can you cut some money from your grocery budget?  Usually you cannot cut your monthly bills like your utilities, mortgage, rent, car loan payment, or credit card payments so your only option to cut your expenses may be in the grocery, clothing, entertainment, and eating out areas.  If your budget still will not balance, then you may have to go to more drastic measures such as getting a second job, etc.

Now that you have a budget that helps you determine where your money needs to go, then it is time for you to stick with it.  Budgeting helps to keep you on track so that you can afford a vacation, unforeseen bills, or other expenses.  Using a budget can help your stress level too, as everyone will know what is expected of them concerning finances.  Getting control of your finances can turn your whole life around!

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