Household and Family Budgeting

Setting up a personal or family budget is easier than you think and the rewards are even sweeter if you stick with it.

One of the first things any financial planner will tell you is to make a budget and stick with it if you plan on being financially stable. A household or family budget is simply just a money plan. It's telling your money where to go before it goes away by your foolish spending habits. A household budget helps you:

• control spending
• stop impulse buying
• start saving

If you live without a budget, you'll be more likely to overspend and forget where all your money went. Not having a budget is one of the top reasons people get into credit card debt.Another hurdle some people encounter is not having self-control and the ability to say no. When the temptation arises to spend money you don't have,

• You need to tell yourself, "No"
• You need to tell others around you, "I can't"
• You need to tell your spouse or your family, "We shouldn't. Let do something at home"

The Steps to Create a Budget are Simple:

• Monitor Spending for a few Months. Use an expense tracking spreadsheet (Excel) to figure out where your money is going and to get an idea of how much you spend in each category.
• Add Up Income. Count all incoming money, salaries, etc.
• Set up Budget Categories. After you figure out what you spend and what you make, use this free sample budget template (Excel) to get started. Here's some recommended budget category percentages that will probably help.
• Automate Your Budget. To make it a whole lot easier, try budgeting software like Mvelopes or You Need A Budget. Both have easy functions to help you set up categories and track spending and Mvelopes is based on the popular envelope system of budgeting.
• Stick to your Budget. Success will come when you're consistent. Soon you'll have the peace of mind, knowing your money is well-spent and you'll probably start feeling like you have money left over.

Below are more family budget tips that will help you succeed: