Every family has to deal with their fair share of money problems. Not everything is smooth sailing. Sometimes, there will be times when you need to cut back and start saving money for a rainy day. The problem is that some people enjoy spending money too much, and so they fail to save any at all. If your family could do with a new budget, it is time to take a serious look at your financial plans. Read this informative guide to help you revamp your budget this year.
Step 1: Document your incoming money
You need to know how much money you have coming in so that you can work out your budget. If you and your partner both have jobs, you need to add the two salaries together. You should also consider any other incoming money that you have. For example, if you get interest on shares or stock, you should take that sum into consideration. You should also think about having a few extra income streams. Perhaps you could sell things online or do some extra work from home. Write down a ballpoint figure of all your incoming cash.
Step 2: Consider monthly outgoings
Before you do anything else, you need to figure out how much money you need to spend every single month. If you are spending loads of money on bills, mortgage repayments and other utilities, you might find it hard to save any cash. You need to find ways in which you can be careful with your spending situation. Where can you afford to save some money? If you are paying for any things that you don’t need to, you should stop right away.
Step 3: Talk to your partner
Sometimes, it can be difficult to speak to your partner about financial matters. In fact, budgeting is one of the biggest things that couples tend to argue about on a day to day basis. You need to ensure that you have a frank conversation with your partner. You can’t shy away from these situations. Sometimes, people avoid having tricky conversations because they think that it will cause problems. It will cause more issues if you avoid having the money talk than it would if you do it.
Step 4: Bridge the gap
If you feel as though you need money as quickly as possible, you need to find ways in which you can bridge the gap financially. Don’t be afraid of using credit cards and loans to help you sort out your finances. So long as you figure out how to repay each bit of money you borrow, you should have no issues from the start. Getting the best short term loan you can, will help you to move forward with your finances. You should tailor a process to suit you so that you know it will work.
Step 5: Download a family budget planner
One of the easiest ways, in which to see where your finances are going, is to download a family budget planner online. Sometimes, it helps to see your finances in written form. When you can see your budget, you will find it easy to stick to it. With your partner, you should sit down and work on the budget planner together. When you have created a viable budget, you need to stick it somewhere on your wall. Look at the plan every single day and ensure that you are sticking to it.
Step 6: Set some rules for everybody
Who is over-spending in your household? That might be a tricky question to answer, but it is one that you need to ask yourself right now. You need to work out who it is that is a drain on your income. For example, if one of your children tends to spend a load of money every week, can they cut back somewhere? Your kids should have weekly allowances so that you know where their money is going. In the same respect, you and your partner also need to have budgets. If one of you tends to spend more than the other, you need to discuss why that is the case.
Step 7: Allow an amount for ‘fun’ spending
If you try to budget all the time, you will fail. Instead, you need to ensure that you set aside a particular amount each month to spend on fun things. If you never let yourself spend cash on interesting things, you will break. When you break, you will end up going crazy with money and spending everything you have (and some that you don’t). You need to allow yourself to enjoy your money so that you can enjoy your life. Sometimes, that means that you need to splurge. If you allow for that in your budget, you should have no financial worries at all.
Step 8: Discuss your monthly budget (every month)
Setting a budget isn’t a one-off activity. Every month, you need to look at your finances and see how you are doing with them. You should make sure that you and your partner spend at least an hour every month looking at your budget. You can spend that time revising your spending or adding new rules to the plan. That way, you will find that your budgeting plan changes as you do. Over time, you will find a plan that suits you and your financial situation. When you find a budget that works for you, you will have no trouble with it.
Step 9: Set some financial goals
Why are you bothering to save money right now? There must be a reason for this sudden change of heart. If you don’t have any goals, you will struggle to work towards something. That means that you might have problems when it comes to saving money. You should set a definitive goal for the future. For example, you might say that this time next year, you will have saved a particular amount for a family getaway. When you know what you are working towards, everything will feel easier than it does now.
