If you have a household with a few relents, then you know that it’s tough to keep your finances under control. After all, your family needs to eat and pay bills and before you know it, your finances are depleted.
One way to ensure that your finances are controlled is by creating a family budget.
Your source of income changes as often. You may have a big check one week, and the next there’s no money to pay the bills. Mastering the skills of budgeting and saving are skills you can pass on to your children.
Here are some family budget examples to use as a reference.
The 50/30/20 Rule
This rule is a great way to manage your finances and budget your money. It states that you should spend 50% of your income on essentials, 30% on discretionary items, and 20% on savings or debt repayment. This rule is a great starting point for creating a budget because it helps you to focus on your spending.
However, you may need to adjust the percentages depending on your individual circumstances. In this rule, you will ensure that your family has enough money to cover all their expenses.
Zero-Sum Budgeting
When you are creating your budget, you will want to make sure that your income and your expenses are balanced. This is where zero-sum budgeting can be helpful. With this method, you will want to make sure that your total income is equal to your total expenses.
This budgeting method can help you stay on track and out of debt. To create a zero-sum budget, start by listing your income and all your expenses for the month. Then, subtract your total expenses from your income.
If the result is a positive number, that’s your disposable income for the month. If the result is a negative number, that’s the amount you need to cut from your expenses to make ends meet.
The Envelope System
Have a separate envelope for each category of expenses, such as bills, food, transportation, and the extra stuff. You would want to treat yourself once in a while by simply buying that luxury linen bedding of your dreams. With this system, you can stay on track with your spending while having the luxury to enjoy what you earn.
Each month, divide a certain amount of money into each envelope. Once the money in an envelope is gone, you would not be able to spend any more in that category until the next month.
Use a Budgeting Tool
A budgeting tool can help you track your spending, save money, and reach your financial goals. There are many tools and apps available, so it is important to choose one that fits your needs.
No matter which one you choose, using one can help you take control of your finances.
Apply One of These Family Budget Examples Today
Budgeting can be difficult, but it’s important to be aware of all your expenses. A family budget example can be a helpful reference when creating your own household budget. Remember to track your income and expenses so you can make necessary changes to stay on track.
Interested in learning more about personal finances and budgeting? Be sure to check out our blog!