Basic Family Budget Tips
Posted by fredclark on September 21st, 2010
Are you looking for a plan to help you manage your personal finances? Then look no further.Just about everyone knows how to budget their personal finances. The hard part is sticking to your budget once it has been created. Here is a fool-proof method of organization that will help you to start implementing your household budget and even start saving money:
1. This is the most important rule- File away your debit card. Keep only one credit card on you at all times and use it for emergencies only.
2. Figure out what your daily spending allowance is. Withdraw enough funds to cover one week at a time. That way if you go over in a day, you can dip into the next day and still know what you have left for the week. Keep this cash in your purse or wallet.
3. Label five envelopes with the following: Gas, Groceries, Fun, Household, and Unplanned.
Gas- Should cover enough gas for a week. Don't forget to plan for any special trips
Groceries- Plan enough for one grocery trip. Some people shop once a week while some do it less often.
Fun- This should cover movies, eating out, trips, amusement parks, etc.
Unplanned- Should cover things like co-pays, prescriptions, and babysitting. Household- Should cover things like shampoo, conditioner, clothes, paper products, postage, etc.
4. All other household bills need to be paid the old fashioned waya check!
This helps you see how much you are spending and you will notice patterns and adapt easier than if you are just clicking a "pay now" button on the internet. It is very important to keep an accurate checking register as well. You should ALWAYS know how much money is in your account!
5. Keep a change jar. You will be amazed at how quickly your change will add up! Give the change jar a purpose. Make it a vacation fund, date-night fund, or something like that.
6. Set up an automatic transfer to a savings account. Even if it is only five bucks a
month it will help you to save!
It's that easy. Just pick one day a week to withdraw the funds needed for your pocket money and envelope money. Don't get discouraged if you falter a couple of times at first. The first few weeks are tough but you will soon see the benefits of this program. It is hard to ignore your spending habits when you are using cash for everything. You will be amazed when you realize the change in you spending habits. Just remember, you have absolutely nothing to loose by giving this program a shot.
