How to make a family budget to start saving?

How to make a family budget to start saving?

Saving is the goal of not a few people. However, getting it is difficult, especially if we do not have the right tools. One of these tools, perhaps the most basic and, in turn, the most important of all, is the family budget . But … how to make a family budget?

A family budget allows us to know the income we are going to have and to foresee the expenses , which is a great help to balance the numbers from month to month. Knowing the income and expenses of each month, we will know exactly how much money we have and how much we can spend. From here, getting saved becomes much easier and automatic .

How to make a family budget: important steps

How to make a family budget: important steps

The first important step on how to make a family budget is, logically, to make a list with our income and expenses. With the income there is no problem. The normal thing is that it is the payroll and, perhaps, some more passive income. With the expenses, however, you have to spin much thinner. We recommend that you classify them by categories . Some examples could be:

  • Home : community, electricity, household services …
  • Loans : mortgage, personal loan, credit cards, financing
  • Supermarkets : purchases of food and household products are a major expense of the budget.
  • Telecommunications : telephony, internet, Netflix …
  • Automobile : gas oil, tolls, repairs …
  • Children : school, clothes, school supplies …
  • Leisure : weekends, restaurants, vacations …
  • Insurance : automobile, life, home, health …

A good idea could be to use an Excel table to organize all this data, although we can also make a simple list with pen and paper . If you prefer, you have at your disposal an infinity of mobile applications that can help you in this organization. In any of the ways, you always have to differentiate between fixed costs and variable expenses.

Mortgages, insurance or loans can be examples of fixed expenses, since all months will be the same. However, with variable expenses, you have to be proactive. Leisure, supermarket or children are categories of variable expenses. This means that each month we must foresee with the smallest possible margin of error how much they will ascend.

With the budget already created, our personal finances are in order . From here, saving becomes a much simpler task. It is enough not to spend more than what we enter. Of course, the big trick is to reduce the expense item as much as possible.

For example, we can start by trying to eliminate financing or credit card fees; we can also reduce spending on telecommunications or insurance by reviewing invoices or even leaving the supermarket if we become very rational buyers and stop doing hot or impulse purchases.

Logically, the budget is a living tool that must be updated every month : update amounts, put and remove categories, add income and extra expenses … And always, always, we must always do this with a goal in the background: try to save a little more each month than the previous one.

We hope we have solved your question ‘How to make a family budget’. Are you going to encourage me to try?