Managing a family budget is probably about as much fun as sitting in rush-hour traffic. The thing is that you don’t want to allow it to consume your entire life. Once you have your budget, maintaining it should only take a few minutes. Here is how to manage a family budget for five.
Ensure your budget is realistic
Budgets are oftentimes tricky, so be sure that the one you have set up is a realistic one and one you are comfortable with. Setting up a family budget that you know your family can’t achieve will only cause headaches and financial troubles down the road.
Keep track of spending habits
Keeping track of the money you and your family spend may seem like a daunting task, but the good news is that several online programs are free. Mint.com allows you to link all of your financial accounts together, automatically categorizing your spending. Budget Pulse allows you to track your spending and set budget goals. Budget Simple allows you to track your spending and manage your bills.
Think long-term, not only short-term
When it comes to things like expenses and spending, many people just look at things from a short-term perspective. While planning from week to week or month to month is important, it is also essential to plan for long-term things like emergencies, home improvements, and car repairs.
Schedule bill-paying days
It is important to schedule paying your bills at a time of the month when you can focus your attention on getting bills paid. Also, you want this time to be consistent, so try lining bill-paying days with your paychecks, like on the 1st or the 15th of the month.
Reevaluate the budget every few months
It is essential to look at your budget every few months or so because when the family needs to change, the budget needs to change as well. During this reevaluation, you may notice that you aren’t spending as much money on clothing or food as you first thought. In this case, you may be able to redirect that money that is needed somewhere else.
