How to create a basic family budget
Most people begin to panic when you mention making a budget or sticking to a budget. But your budget can be your ally and it can greatly improve your financial outcome. Most people live from pay to pay and buy what they want, when they want. If they continue this pattern they will soon find out that the money will run out before the bills come in. They never have any money for special events or holidays. To get control, you NEED a budget.
Step 1: Get a handle on your spending. I think it's important to track your spending for a period of at least 12 weeks. I track my spending all year round and have done for many years so that I know exactly what to expect at certain times of the year. For example, I know that July/August is a tough time financially as I have expenses like motor registration, rates, and a winter electricity bill plus this year I had 2 car services as well. I keep an excel data base with a month to month breakdown of my spending on it, so I can look at a glance what my incoming and out goings were.
NB: This is just a tiny bit of my budget
More next time.
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