A family Budget is essential in determining what you really should be spending your money on. As we enter a recession reducing our spending may be even more important to us.
The first step to starting a family budget is deciding how you want to keep your budget such as a computer spreadsheet (ie excel), budgeting software, or a notebook and pen.
After you have decided on the method you will use. Have one coloumn to list for all your sources of income and what you expect to earn over the period that you want to budget for (week or month) and what you plan to spend on donations, food, housing, utilities, transportation, clothing, insurance, paying off debt etc… and what you will put into savings. Being sure to budget spendings less than what you earn if at all possible.
Beside that column then list your actual income and expenses. Overtime you will gain a better idea of what you are able to spend on each item.
It really is very simple once you get the hang of it.
