3 Easy Steps to Creating a Family Budget

by Alecia on March 10, 2011

Thank you to TurboTax for sponsoring my writing about household finances. Learn more about how TurboTax can help you find every tax deduction you deserve. I was selected for this sponsorship by the Clever Girls Collective, which endorses Blog With Integrity, as I do.

A few months ago we talked about the 3 Major Steps to Creating a Family Budget that have helped our family most. Now that tax season is in full gear, I wanted to highlight those steps again for you. This is the condensed version of our extensive Family Budget post, but I hope it will help inspire you as we move forward this year. The most important thing to remember through the process is that you’re not trying to create the perfect budget, but rather a workable budget – something that suits your family and will help keep you on track!

  • Organize Your Finances – Before you can create a successful budget, you have to have a decent understanding of how much money you bring home, how much money you spend, and on what you spend your money. To do this, we suggest that you organize your finances by figuring out how much money you have to spend, how much money is already accounted for in fixed expenses, and what categories you are going to use to track your income and expenses. Honestly, this step will be the most difficult and time consuming out of the entire budgeting process, but trust me; your efforts will be greatly rewarded in the end.

  • Make a Plan – Now it is time to build a budget!  Designing a spending plan from here is more soul searching than it is fancy formulas and crazy finance theories. What are your family’s financial goals? These can be long term or short term goals. You and your family should come to the table and develop a plan that addresses these family financial goals. Remember – you’re creating a great workable budget, not a perfect budget. Leave yourself room for those adjustments. It will relieve your budget stress and help you actually stick to it.

  • Review and Adjust – Finally, at the end of each month, we suggest that you look over your budget numbers and actuals. Learn from what worked and what didn’t work, and make those adjustments in the next month’s budget. You are not designing a perfect budget here, so don’t be discouraged with failures. Learn from them and apply changes for the next month.

For a more detailed explanation of how our family implements these steps, please read our earlier post 3 Steps to Creating a Family Budget.

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{ 1 comment… read it below or add one }

Anne Alexander August 21, 2012 at 10:41 pm

still working on this budget with THE LORD’S help.

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3 Easy Steps to Creating a Family Budget

by Alecia on March 10, 2011

Thank you to TurboTax for sponsoring my writing about household finances. Learn more about how TurboTax can help you find every tax deduction you deserve. I was selected for this sponsorship by the Clever Girls Collective, which endorses Blog With Integrity, as I do.

A few months ago we talked about the 3 Major Steps to Creating a Family Budget that have helped our family most. Now that tax season is in full gear, I wanted to highlight those steps again for you. This is the condensed version of our extensive Family Budget post, but I hope it will help inspire you as we move forward this year. The most important thing to remember through the process is that you’re not trying to create the perfect budget, but rather a workable budget – something that suits your family and will help keep you on track!

  • Organize Your Finances – Before you can create a successful budget, you have to have a decent understanding of how much money you bring home, how much money you spend, and on what you spend your money. To do this, we suggest that you organize your finances by figuring out how much money you have to spend, how much money is already accounted for in fixed expenses, and what categories you are going to use to track your income and expenses. Honestly, this step will be the most difficult and time consuming out of the entire budgeting process, but trust me; your efforts will be greatly rewarded in the end.

  • Make a Plan – Now it is time to build a budget!  Designing a spending plan from here is more soul searching than it is fancy formulas and crazy finance theories. What are your family’s financial goals? These can be long term or short term goals. You and your family should come to the table and develop a plan that addresses these family financial goals. Remember – you’re creating a great workable budget, not a perfect budget. Leave yourself room for those adjustments. It will relieve your budget stress and help you actually stick to it.

  • Review and Adjust – Finally, at the end of each month, we suggest that you look over your budget numbers and actuals. Learn from what worked and what didn’t work, and make those adjustments in the next month’s budget. You are not designing a perfect budget here, so don’t be discouraged with failures. Learn from them and apply changes for the next month.

For a more detailed explanation of how our family implements these steps, please read our earlier post 3 Steps to Creating a Family Budget.

  • Share this article on Facebook
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  • Email this Post
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