Despite the fact that people have higher paying jobs that offer more benefits, the average family is having a hard time getting ahead. Why is this? The simple reason is that families are spending more than they make. Most people do not have any idea how to budget for the family. If they have money in the bank, out it goes. People are also excessively concerned about appearances and think that lacking amenities such as cable television and new cars is embarrassing. If any of this sounds familiar, it's time to change your thinking and get your finances under control. It's been said that debt is the worst form of poverty, as it robs you of your money before you've even earned it.
The first thing that you will need to do is wrap your brain around exactly how much money you are bringing in and where it is going. Discipline yourself as this step is absolutely crucial for success. You and your spouse will need to be on the same page and work as a team to learn how to budget for the family. Add up your average monthly pay. Then, gather your essential monthly bills and get a number down on paper. Finally, spend a month tracking every single extra expense, even if it's just a candy bar or a latte. Write it down. This exercise can be downright shocking. By the end of the month, you should have a pretty good idea of your income in relation to how much is going out each month. You should also see the areas that are dragging your budget down.
The next step is to make some cuts. This doesn't have to be a drag. Change your thinking! Seeing a movie and eating out every week is not your right. In fact, there's better ways to get the same enjoyment for much less. The biggest areas where most families can make a huge budget impact is in the categories of groceries, entertainment and gas. These are essential for learning how to budget for the family. The easiest way to cut your grocery bill is to stop buying convenience food. It only takes ten more minutes to cook bulk rice than the instant stuff, but the cost is as much as half. Multiply that by 50+ grocery items and you'll start to see a real savings. Use coupons and buy in bulk. When it comes to entertainment, look for alternatives. Consider dumping your cable. As shocking as this may seem, no one has died from withdrawal and the new converter boxes offer more free options than ever. Subscribe to a rental service like Netflix. You can rent a month's worth of movies for less than a theater date. Finally, stop driving so much! If you don't have to be out and about every day for work, pick one day a week to run errands, make appointments and shop for essentials. Gas costs for a daily trip really add up. Also, if you have extra vehicles, sell them. If you have several car payments, dump them and buy a reliable used car.
The hardest part of determining how to budget for the family is deciding that it is worth it. There is nothing so draining as debt. In the simplest terms, if you don't have the money for it right now, don't buy it. Stop using credit cards entirely. Also, when you have kids, you really need to make them a part of the process. If your kids are little, you're in luck! They easily adapt to lifestyle changes. Older children will likely need to be gently convinced of the value of the new plan. However, doing so can not only change your immediate financial life, but provide a good example for them as they grow.
