Starting a household budget and sticking to it is analogous to living a health-conscious lifestyle. Just as exercise and a good diet are needed to stay physically healthy, wise spending and living within your means are needed to stay financially healthy. With a bit of discipline and an eye to keeping records, you’ll find it easy to live on a budget.

Count your financial calories
You may need to slash your spending to stay on budget. The only way to do this is through some time in the office doing some adding and subtracting, tracking your expenses and your income. Many people prefer to track their finances online or using specialized budget software, but a simple spreadsheet on your computer or a pad of paper and pencil will do just as well.

List all of the big, monthly expenses such as rent or mortgage payments, car payment, utilities, insurance (which may be annual or biannual), food and entertainment. Make sure you include everything that is considered a need in your family budget, which are the things you just can’t live without. Total up the needs and mark that number down.

Now take the time to add up your expenses and see what you’re really spending each month. If you primarily use debit or credit cards for your daily expenses, you’ll want to go over these carefully and make note of where your money is going. If you like to use cash, buy yourself a tiny notebook and take it with you for the next month to write down everything you spend.

• Previous Page
• 1
• 2
• 3
• Next Page