With the cost of living continuing to rise to new heights, getting the most out of your wallet is as important as ever. Even the cost of the basics (the good old trio of milk, bread, and eggs) has many of us doing a double take at the grocery store, not to mention the high cost of other essential expenses (housing, utilities, fuel, etc.).
Learning how to stretch the value of a dollar through budgeting can help keep overspending and the stress it brings at bay, especially for families. There are lots of ways to approach the family budget. Whether you love spreadsheets, or budgeting apps, or think a spending diary is the way to go.
No matter what budgeting tool works best for you, the following 5 family budget tips can help guide you as you navigate your finances:
Knowledge is Power
A helpful place to start with a budget is to identify and understand your expenses. Knowing how you spend your money and what your expenses are can help you begin to set financial boundaries for yourself. Before starting or revamping your family’s budget, keep track of your spending for one month. Take note of the funds that go towards necessary expenses and the not-as-necessary ones, too. Record them in an app, a notebook, or in some other way that makes sense to you. At the end of the month, review your expenses and consider the different places your money goes. This can help you tailor a budget to best meet your family’s needs.
Divide and Conquer the Family Budget
Designating separate accounts for specific purposes can help you make your money work for you. This can help you divert your family’s income into many streams to meet your family’s budget and needs. Try creating an account for household expenses (mortgage, utilities, internet, etc.) and one for daily needs (food and clothing). You could also open an account for all your discretionary spending (entertainment, dining out, etc.). Dividing up your money across these accounts in whatever way works for your family will help you make sure all your bases are covered.
To Automate is Great
Automation can be a really powerful budgeting tool. Setting up auto pay for bills, or auto transfers to your savings, investment, or retirement accounts, can do wonders to lighten the mental load. No more stressing about missing a due date or forgetting the password (again) for your credit card or your student loan servicer. Moms have enough on their minds!
Embrace Being a Coupon Lady
There is nothing like the thrill of a good deal. If there are stores where you shop frequently, definitely download their apps and scan them for coupons to clip before your next shopping trip. Keep an eye out for cash-back deals on items you regularly purchase. Sometimes I forget to do this in advance. You can catch me scrolling at the cash register but better late than never.
Consistency is Key
As with anything, budgeting takes consistency. Using the family budget tips above, along with other strategies that work for you and your family, will help you create good habits. Those habits will, with time, yield results. The more you do a family budget, the better a budgeter you will become!
