Family First: Creating a Budget for a Brighter Future

Budgeting is now mandatory in financial freedom. Create family budget is mandatory in this Life style. Tracking your money is good. Budget is very underestimate financial elements. We should focus on this. It is good for all family who have not control their expenses and maintain their financial things. Let’s craft family budget

Making family budget is very easy and simple. It’s good to have it and follow it. Here is the fundamental steps to cry your monthly budget.

Step 1: list your income .

list your income: this is the money which you get from all over your source of income during related month.

Write down your earnings money also your family member’s, don’t forget to write down that money from your side hustle like sale items or any other which generate income.

• Salaries and wages

• Investments and dividends

• Rent and other regular income

if you got an irregular income, put the lowest estimate of that you earn from it.

Add up all your income sources to get a clear picture of how much money you have coming in each month.

Step 2: List your expenses.

Now you have to plan your expenses. You have to proper idea for your expenses.

For better planning should check your privious month bank statement and note down your major and minor expenses, think about should you minimize or get lower. If you don’t have emergency fund yet, you need to plan for this with priorities, also add this to in expenses.

Expenses have major 2 types like fix & variable expenses.

Now categorised all your expenses into -Rent or mortgage, Utilities (electricity, water, gas, internet)Car payments or transportation Cost, insurance premiums (health, life, auto)Minimum credit card payments. All of this considered under fix experience, which means they are almost same for every month and no option for all this expense this is very easy to identify and note down.

other is variable expenses like Groceries, Entertainment (dining out, movies, hobbies),Travel, clothing and accessories, Home maintenance and repairs, shopping bills etc

all of this are very difficult to identify so you must consider atlast 3 months bank statement and find out all this.

Setp 3: Subtract expenses from income.

When you subtract your expenses from your income, it should be zero or equal to zero

This is a zero based budget, it means your all income have way to go for expenses with proper reason. Also it doesn’t mean your account is Nill but you should have $100-300 in there.

This is good for those who have not control there expenses and send money on coffee and other way to expenses.

Now if it is your 1st time this will give you end up with negative number. Yes,this happens.so, don’t stress just be calm and plan to cut your unwanted expenses.

This zero- based budget is give you directions for all income & control you to not to spend unwanted expenses.

Step 4: Track expenses throughout month.

Yes, you have to track all your expenses throughout month.

Every time you spent note down at end of day which gives you confidence to get on your budget. There is many applications also available to track your expenses just use it. With this habit you can eye on overspending, this for all your earnings members.

Step 5: Make a new budget for next month.

Life is unexpected, it not go as we plan and every time it’s have its new chapter.

If your last month budget is successful and you get all your achievements like emergency fund, investment etc. so stick with that and follow it.

Done be surprise, You’ll have holidays, birthdays, annual subscriptions, so you have to Match with that extra expense

Tips and Variations:

• Consider using the envelope system, where you divide your expenses into categories and allocate cash for each one.

• Take advantage of budgeting apps like Mint, You Need a Budget (YNAB), or Personal Capital to track your expenses and stay organized.

• Review and revise your budget regularly to reflect changes in your income, expenses, or goals.

Make family budget is very easy and simple so you and your family understand and stick to that.

Example Budget Plan:

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