How to Create a Family Budget

Video Transcript

"This is financial adviser Patrick Munro talking about how to create a family budget. Creating a family budget is an important component of having a successful financial future. Basically, if you have a family that is composed of two individuals, that's one thing. If you have kids as well in your family unit, your budget is more complex, but you can keep the simplicity of the family budget just like that by having a system. And system is a way for you to set up your expenses first off. The expenses are either fixed expenses, meaning rent, mortgage payment of course if you own your home, food, utility payments, all of them necessities of life. Those are fixed payments and you want to ledger those in every month. Then your variable expenses are behind that. That's credit card expenses. Bills that do come and go, those are variable expenses. Underneath that, of course you want to factor in your income. Your income will pay all of those expenses and of course always make sure you pay yourself first. This is Patrick Munro talking about how to create a family budget."