How to Budget for Family Incidentals
Fixed expenses, like a mortgage and car payment, offer predictability, making them easier to fit into the budget. Incidentals and discretionary spending become more difficult to control, especially when there's more than one person involved. A few unplanned trips to the mall quickly throws off your entire budget. An accurate written budget for your discretionary spending ensures that everyone knows the spending limits.
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Instructions
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Calculate the monthly amount you have in the budget for incidentals. Review the budget to see how much is left after all fixed and necessary expenses are paid and money is put aside for savings.
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Divide your incidental expenses into categories based on the type of spending. This might include dining out, entertainment, gifts, beauty routines and miscellaneous extra spending.
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3
Review the calendar each month to identify extra incidental expenses. For example, during December, most families spend money on holiday gifts, holiday clothing and food for holiday parties. Birthdays and vacations are other events that increase the incidentals for the month. Plan ahead for those events to ensure you have enough money to cover it.
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Save your receipts for the month that show your incidental expenses. Track the amount you actually spend versus what you budgeted. Use the tracking process to figure out where you need to cut spending and how much to budget for incidentals in upcoming months.
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Cut back discretionary spending to have more money to put toward savings or retirement. For example, instead of heading to the salon every month, cut back to every other month. Handle tasks like manicures, mowing, snow removal and cooking yourself to save money.
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Withdraw the amount of money you're allowed for discretionary spending each month. When the cash is gone, the incidental spending is over for that month.
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