How to get more money with a family budget
Nowadays it’s very important to know how you can spend all the money that you earn, wisely. Inflation and the high cost of living today make budgeting a priority number one among families.Are there any secrets when it comes to keeping a family budget?
Keeping track of your earnings and expenses and of your assets (your house) and liabilities (the mortgage on your house) is of importance for everybody, no matter the income. It’s when budgeting is missing or people fail to keep a proposed budget that financial problems are cropping up. And worst of all, it’s creeping up slowly.
A budget refers to a financial plan, where you take into consideration the incoming and outgoing monetary resources. A good budget should not only mean a balance or equity between income and expenditures. It also means lesser expenses, so you are able to save money as well.
Let’s say, you earn a thousand pounds per month. Part of your income can be child benefits and other benefits. Then you make a list of all the expenses you have in a month. There are payments four your house, food, electricity/gas/oil, transportation, in case you got hobbies, you add them, holidays, etc.
By doing this over at least a three month period, you can work out the avaridge of the costs you have. Presuming that income tax and any other taxes are paid for. Deduct your total expenses from your total income and the remainder is your saving. The sooner you start saving, the better. As a matter of fact, successful people always pay themselves first. They always save, whatever comes in and then budget the remaining. For most people that doesn’t feel right, at the same time, this gives you a nest egg (especially when you start early to save; put part of pocket money away!), You don’t use the money, you can start to use the interest that it makes if needed.
As children, we start to save in a piggy bank. To place it in a bank later where there is minimum interest rate. From your income you transfer the minimum amount you want to save into a savings account. Not the best investment at the moment but at least your money is safe from you and from intruders. With bigger savings, you can get the services of a financial adviser who can give you higher-yielding investment options
Some tips to help you stick to the family budget:
- List your income and expense on a weekly or monthly schedule, preferably in a logbook. Keep track and adjust where needed.
- Make a shopping list for all the things you need for your target period; add during this time but keep in mind: do I need this and will I keep the costs within my budget? It makes sense to do the grocery shopping once a week. Use the discounts, as buy one, get one free, only when you know you’ll use it.
- With a shopping list and a routine for the grocery shopping, you can avoid going to supermarkets or shops in between. You won’t come home with extra’s that you don’t really need and that are a burden on your budget. At the same time, it’s great to budget for something special once in while!
- Think twice before you buy! By doing this, you will know, deep down in your heart, if it’s a necessity or a whim.
By following your routine and buying what you need, you avoid throwing food out as well, what saves you money. It might take some time to get used to your budgeting system, but well worth it.