How to Write a Home Budget and Stick to It

In this article, I will share tips about creating and maintaining a home budget.

Instructions

1. 

   Before we get started, you'll need to gather all of your monthly bills together. You'll also need to figure up your monthly earnings. When you do this, only count your first 40 hours per week. Never count overtime or bonuses. (Seriously, Never) If you want to, you can use the financial budgeting software of your choice.(There are several cheap and free software suites available.) I prefer Microsoft Money.

   Ready?

   Good, lets get started!

2. 

   First, add all of your predictable bills together. (Predictable meaning bills that always cost the same.) These can include cable/satellite, internet, landline phone, mortgage, and insurance bills.

3. 

   Now, let's look at your bills that change on a month by month basis.(Grocery, gas, and electric bills would fall into this category.) When we calculate these, we will estimate their highest probable cost.(The highest they are likely to cost, another way to think of this is the worst case scenario cost.)

4. 

   In steps 2 and 3, we designed your basic budget, but in this step we will focus on the most important part of budgeting... Sticking to It!

   Gather everyone whom you support, and/or share financial responsibility with. Ask them if they want or require anything.

   Group input is the most crucial part of maintaining a functional budget.

5. 

   Finally, the money you have left over can be used for a multitude of different things. It's always a good idea to save, but planning a family activity or two won't hurt, either, as long as you keep your priorities in mind.