How to Plan a Household Budget

Video Transcript

"The way I suggest people plan a household budget is just starting out get a credit card, have your spouse get a credit card, buy as much as you can on the credit card and pay the balance off every month. What you have to use checks for obviously paying bills and so on and so forth get a local checking account and have a his and a her checking account. She writes the checks for what she is buying out of her checking account and he writes the checks for what he is doing out of his checking account. Also you should have a joint account. This is an account that you would keep for things that you do together, i.e., taking trips and so on and so forth and it is kind of a savings/checking account a money market will do that for you and that way you can track everything because you get your credit card statement every month that shows exactly what you spent. The big mistake that people make is using cash. Using cash you can't track your expenses, you can't track your expenditures and unfortunately too many people in this world they do business that way and so how do I know where things are and how much money I am spending if I can't track my results. So you don't really plan a budget, you track expenses."