Page 25 - How To Set Up a Family Budget The Easy Way

If you are paid weekly, divide each budget item into 4. Cash flow management will form a big
part of your fiscal strategy, once you have put your budget pen to paper and mapped out the
needs and requirements. Utilize your cash, checking and savings account (if applicable) to pay

for expenses. Do not pay your bills with your credit card!

Keep track of all your discretionary spending. A financial diary for a week is always a good idea
to scribble down in every time you withdraw money, pay for something or open your purse

without thinking.

This will provide you with insights you did not have before on where the money actually goes.

It will also carry within it, clues to adjust budget lines if actual cost is higher on certain items.
Spending patterns and behaviors will emerge that might surprise or shock you!

Having some wriggle-room and discretionary spending is always motivation. The occasional

treat and indulgence, special night out or other family activity is that more enjoyable, if you
know you have worked hard to earn it and deserve a pat on the back for all your fiscal
responsibility and discipline!

Always keep one eye on the future folks… budgets might need to change again and again for a
variety of reasons. You can never feel you have “arrived” completely and that your budget is set
in stone. Family and life often throws us a curve ball or two, banks, service providers,
government and fate sometimes do too!

Changing budgets should not be a source of frustration for you; it actually shows you that your
family budgeting process is actually working. It is a real-time pulse and mechanism to capture

these changes, which will leave you prepared and informed, ready to act and respond
appropriately. This impetus for change can come from different sources.

Here are some examples:

Change of income, goals, rising prices, goals reached, family growing, moving and or relocating
to a new place, family getting smaller, new spending habits, change in lifestyle or unplanned

expenses.

If you can stick with it and see it through a family budget can help you meet your goals, get and

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