Comments on: How to Set Up a Family Budget

on 1/2/2007 I have recently had a chance of using a Personal Finance Software package by Australian business Parcus Group - Personal Finance Associate.
The product is very good. For the AU$29 it costs, you get budgeting, financial planning templates as well as advanced features that typically cost loads more as separate software packages such as investment real estate calculations (mainly based on rental cash-flow analysis) as well as some value based shares valuations (based on Warren Buffet's stock valuation methodology)
Their website is www.parcusgroup.com
For anyone interested in their own wealth creation this product is definitely worth looking at.

on 11/22/2005 A software product like Quicken is great for organizing all financial data, not just budgets. I have used it for years and depend on the reports it produces to determine what my yearly expenses will be. It is not for everyone, but anyone who has basic financial skills should be able yo use it.

on 11/22/2005 Everyone likes to buy their toys, but the overall financial security of the household needs to be considered first. I'm not against toys; just save up the money first to buy them versus putting non-essential day to day expenses on credit. An example of a toy in my relationship was the spouses need to always have a big expensive truck in the driveway. I wasn't against the truck, I was against the debt to purchase the truck when there was no money in the savings or money built up for college tuition. Be considerate of the overall family financial situation and provide financial security for your family.

on 11/22/2005 Figure out a budget based on a savings account/checking account split. Savings builds up for things like real estate taxes, vacations, and insurance. Checking is monthly (e.g. phone, groceries, etc.). Split your monthly income into the savings and checking accounts according to the budget. Savings amounts are strictly budgeted. The checking account is controlled by watching the balance until the next payday.

on 11/22/2005 In a second checking account, deposit a sum that covers your monthly expenses. Have all of your bills automatically withdrawn. This account acts as a holding cell for household obligations - the primary account is for day-to-day operations. Works for me!

on 11/22/2005 What I do is divide my bills by the four weeks in the month. A set amount goes to savings each week. When there is a 5th Friday in a month, you have a "free paycheck" to save.

on 11/22/2005 Keep an envelope in the car for the credit cards you use. When you buy anything using a card, put the receipt in the envelope as soon as you enter the car. Keep changing the envelope every month. Will save you time and hassles when looking for receipts.

on 11/22/2005 I separate all of my bills to be paid on either the 1st or 15th of the month. This enables me to pay all my bills at once and on time. I will also immediately know how much money I have left over for entertainment, vacation, etc ...

on 11/22/2005 I make a list of all once-a-year type bills (car registration, shots for pets, school pics, etc.) and divide by 12. I save this amount each month and, when one of those things come up, I have the money to pay it. No more surprises.

on 11/22/2005 Get a notebook. List your expenses and their due dates. Divide payments into small amounts & use labeled envelopes for payments money storage. Reduce duplicate credit usage to 1 or 2 credit cards. Use the net for bill paying and to check your accounts.

on 11/22/2005 I started doing this in 1992. It works for me, but requires a lot of self-discipline. I start each month with the balance and enter every payment, etc in advance in the form of a calendar. It works well for me as I always have my actual working balance.

on 11/22/2005 I have worked out all our big bills (i.e., rent, car payment, insurance, etc.) and have divided it up so every week, I remove that amount from our paycheck. So at the end of the month, we don't lose an entire paycheck to our rent or car registration.

on 11/22/2005 I have put all of our regular
bills on a calendar based on due dates and when our salaries are received. This has helped get everything paid on time and keep in prospective where our money goes, since other misc. expenses are also recorded.