Page 36 - How To Set Up a Family Budget The Easy Way

Make sure you have enough well-defined categories to capture your true spending. Putting too
much into a miscellaneous category makes it harder to track what you have spent and harder to
control, especially the splurges!

3. Need
If you did not know you need it, you probably do not. Do not buy things just because they are on
sale. If you had no use or want for it before you saw it on sale, then you will have no use for it

later.

4. Save money for special occasions on a budget

Add up how much you will spend on Christmas, birthdays, etc. Treat that total like it was a debt
and make payments to a savings account for special occasions. Be sure to select a specific day of
the month that your payment is due and stick with an amount.

5. Don't Forget to Budget for Special Occasions
When forecasting your expenses, remember to include gift-giving occasions. Mother's Day,
Valentine's Day, birthdays, Christmas, and anniversaries are good examples. If you plan to spend

money on these occasions, remember to include this in your budget.

6. Don't use a debt to get out of another debt
Do not take out a consolidation loan to pay off your other debts. The point is to get out of it, not
to squeeze them together and end up paying interest on the loan while paying off your debts. Try

consulting a "free" debt counselor service first.

7. Remember To Budget Time As Well

We have all heard "time is money." Well-spent time can be an investment. Take a few minutes
to plan ways to save on bills - 15 or 20 min. researching lower rates on electricity or long
distance can pay off. You will know when time spent is not worth it.

8. The envelope system
Total yearly/monthly bills, divide each into 12 months. Divide monthly amount into bi-weekly
payments. Use envelope for each bill; put in cash every 2 weeks. Use only the cash in envelope

till it is gone. Do not touch your account/debt card! Envelopes ONLY!

9. Good teeth cheaper

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