How to Set up a Household Budget

With the recession in full swing many of us have to evaluate our spending habits. We live in a time of uncertainty and we need now more than ever to set up a realistic houshold budget, tighten our belts and hang on for the ride

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Computer
• Internet
• An open mind
• Time to do research

1. If you haven't done it already, you need to set up a budget. This means writing down your expenses and catergorize them. For example, Mortgage or rent, car payments, insurance, food, utilities, misc. This will give you a realistic view of how much money is going out, how much is coming in and how much you have left, if you don't have any or are in the negative zone, it's time to really make a budget and stick to it, if not you may end up overwhelmed.

2. Next, look over the catergories and decide which areas you are over spending and what you can do, or not do for that matter, that will save money in each catergory. If you use your ATM card a lot look at your online bank statement. Some banks will break your expenses into catergories so it's easier to track spending.

3. Get you family involved, if you have kids make it a game to them. The key with a budget is to make sure everyone is on the same page, if not it won't work. You could set up a reward system for your kids and tell them if they help cut expenses you will reward them with a higher allowance, a fun day, or whatever will motivate them to help. By getting kids invloved it can help them have a more realistic view of the family finances, that way they will better understand why they can't get the latest video game or whatever it may be and know you aren't just being mean, but it's just not in the budget at that time.

4. There are tons of websites dedicated financial planning, setting up budgets, tracking finances, frugal living, and cutting expenses. Here is a list of some of the best ones I've come across.
   
   http://getrichslowly.org/blog/ ( a wealth of info)
   
   http://www.budget101.com/article.htm ( everything about budgeting)
   
   http://www.homeeconomiser.com/ (great tips and you can get a free newsletter and get ideas for helping kids better understand money and tips for allocating allowance). Awesome site!!!!!!!!
   
   http://www.thesimpledollar.com/2007/07/27/review-the-complete-tightwad-gazette/

Tips & Warnings

• Old habits are hard to break. Once you've set up a budget just know that it will take time to re-adjust your life style. Maybe that means not eating out as much or cutting down on lattes. Whatever the case may be, be sure to not cut the things out that you really love, just cut down on spending.

[hichamsyba]

on 8/19/2009 hello nice article i recommend you i give you 5 stars you too plz

[smiletimes4]

on 5/16/2009 Great tips and I love all the links you included! I sooooooo need this kinda info!

[jcoolcash11]

on 4/8/2009 Great tips on how to make a household budget! RRCR5*

[drlilly11]

on 3/24/2009 Great! I totally agree with what you wrote! I use http://quicken.intuit.com/ It breaks down your monthly expenses into clothing, household, food, entertainment etc. Gives you a good idea where you can save and spend less on.

[our5kids]

on 3/19/2009 I need this advice thank you.