or Personal Budget Planning
you ever periodically wondered, "where did
all my money go?" If you are like me and
most other people, you probably have. Developing a
family or personal budget plan will help you find
out where your money went and help you control where
before you jump into the nitty gritty of plugging
numbers into a family
or personal budget worksheet, you need to always
keep one key thing in mind:
and following a family budget is similar to a diet.
have to find the discipline to actually follow the
plan. And if you fall off track one or two days, get
back on track. A budget plan is trying to allocate
your unlimited wants and needs in a world that has
limited resources (your income!). That is the key.
1 - Setting goals
and your family need to sit down and decide what financial
goals you want down the road in 1, 2, 5, 10 years.
A family budget is truly a roadmap of how you
want to allocate your income in the future. Are you
trying to save for the future? Pay down your credit
card debt? If you determine that you need to save
more, make this a part of your monthly budget. You
will be amazed at how a little saved and invested
every month can grow over time.
2 - Analyze Your Past
worry, you are not required to lie down at the psychiatrist
for this! You now need to pull together 1 or 2 months,
preferably 3 months of bank statements so you can
determine what you spent your money on. Categorize
these totals into broad categories. Not too broad
and not to narrow. For example, you want a category
called "groceries", not "steak"
3 - Create Your Budget
you can get into the nitty gritty of creating your
household or personal budget! Download my budget worksheet
or create your own. The key here is to analyze your
expenses on a monthly basis over the course of a year.
A budget is not as simple as "one month does
not fit all". The reason is, you have some
expenditures that are quarterly or semi-annual, such
as car insurance, life insurance. Don't forget about
birthdays, the holidays, or that wedding you know
you occur in three months! Be honest with yourself
and the family budget you create will work for you!
4 - Adjust your family budget
tune your household budget AND your expenditures as
you follow the plan over the coming months.
your family budget realistic? Are there expenditures
that you did not anticipate? Are you actually following
your household budget? Again, be truthful with yourself!
Above all, don't give up!
will find that the satisfaction of actually following
your family budget and achieving your goals to be
much greater than ordering out for lunch instead of
brown bagging it!
are some money saving tips to reach your family budget
goals. Good luck, I know you can do it!