We all know about the various benefits of creating a budget for our family’s finances. Not only can it help us keep on top of our spending, but it also makes it easier to see the areas in which we can try to save a bit more money. However, not all of us are financially minded. And for those of us who don’t take to numbers quite as easily, it can be very tricky trying to create the very first budget. But don’t be so nervous about starting your family’s budget! Here are my tips on planning your very first one.
Know Your Worth
First of all, you need to look at all of your finances and figure out how much you are worth. So take a look at all your savings accounts, investments, and the money tied up in your property to see how much you have in total. You should also take a note of all the interest rates and expenses that each of these incur. Once you know your net worth, it will help to shape your future financial decisions: http://money.usnews.com/money/blogs/my-money/2014/03/12/5-ways-to-make-smarter-financial-decisions.
Figure Out Total Income
One of the most important figures that will be in your budget is your family’s incomings. This will usually be just you and your partner’s incomes. But you might have some other sources of income, such as from rented properties. For instance, you might try one of the following ideas to try and make a bit of quick cash: http://www.stay-a-stay-at-home-mom.com/ways-to-make-quick-money.html. Because incomes can sometimes rise and fall, it might be worth it if you figure out your average monthly income. You can do this by taking your last six months and taking the average figure.
Look At Recurring Monthly Expenses
Next, it is important to work out how much you have going out each month. You will have some regular expenses, such as monthly bills, rent or mortgage repayments, and groceries. Once you have figured out your average monthly expenses, you should take this away from your monthly income to see how much you have leftover each month. Don’t forget that you should set some cash aside that can be used for irregular monthly payments.
Use A Budget Database
You don’t need to sit at your table and pore over papers to figure out your budget anymore. There are plenty of ways you can now use technology to help make your budgeting a whole lot easier. For instance, there are lots of new software and databases that can do all the difficult sums for you. All you need to do is simply enter in all your figures into the database, and it will then generate the final figures you need. Some of these databases also give you the chance to plan certain financial goals, making saving money that little bit easier for you and your family.
Budgeting doesn’t have to be hard. Especially not now you have these fab tips!