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The Monthly Family Budget Gives You Financial Freedom
For the growing family keeping track of monthly finances
is one of the most important steps you will ever take to control your
financial future. The best and easiest way to do this is by keeping a
monthly family budget. The only way to know how much money a family has
coming in and going out each month is by writing it down on a budget
worksheet. Only
then can you see exactly where your expenditures are more then expected and
adjust the cash flowing out as needed.
The first step to creating a family budget is to list all the family income
sources. This includes salary, hourly pay, child support, alimony, any
investment income, and any thing else that increases your monthly income.
You will also need to keep track of which accounts money is to be deposited
in in order to pay bills. This is important if you and your spouse keep
separate accounts. Monthly income may change from month to month but by
writing it down you will have better control of you cash inflows.
Next up is the least favorite part of any budget planning process, the
family expenses. It's easiest to write down those that don't change each
month, like a mortgage, rent, or car payment. Next write down those bills
that fluctuate each month such as the electric bill, gas bill and others in
this vein. When you get to things like groceries this can be a little more
difficult because it can vary greatly each month. When doing your first
budget just make an educated guess, but be sure to track all your
expenditures through out the month. After two or three months you will have
a good idea as to how much you are spending on unknowns like groceries,
eating out, gas and other things.
Once you have both sides listed out, income and expenses, add them up and
see where your family's budget is at. Many people are surprised to find that
they spend more then they make, often times making up the difference with
loans and credit cards. A family budget gives you a chance to see if indeed
your expenditures are to high and can give you a clear idea of where you can
cut expenses to help get out of the revolving debt cycle.
If you are one of the lucky ones and have money left over this is a great
time to finish paying off those debts by throwing that extra money at them.
Or if you are debt free you can start saving money in an emergency fund, for
future big purchases, and start contributing to a retirement account. This
is the point of the family budget, to take back control of your money and
make it go to work for you and your family. | 
