Here are ELEVEN more practical suggestions and tips from online users posted on the internet relating to family budgeting:

1.   Keep proper records

It takes time and requires a lot of self-discipline. Start each month with the balance and enter every payment, etc in advance, in the form of a calendar. It works well for most people due to the fact that they always have their actual working balance handy. Remember the comment about having your financial information at your fingertips? Here is a sure-fire way to get you on that path quickly.

2.   Calendar Calculations

Putting regular bills on a calendar based on due dates and when salaries are received proves helpful to some. This helps specifically to get everything paid on time and keep in perspective where the money actually goes, since all miscellaneous expenses are also recorded.

3.   Getting bills paid

Working out all the major and large bills (i.e. rent, car payment, insurance, etc.), dividing it up so every week, that amount is removed from the family ‘pay’. Therefore, at the end of the month, there is need or risk to lose an entire pay to rent or car registration.

4.   1-2-3-4 Plan

Divide all bills weekly. A set amount goes to a savings account each week. When there is a 5th Friday in a month, you have a “free pay” to save.

5.   Open a household account

In a second checking account, deposit a sum that covers your monthly expenses. Have all of your bills automatically withdrawn. This account acts as a holding cell for household obligations – the primary account is for day-to-day operations.

6.   A timely budget

Get a notebook. List expenses and their due dates. Divide payments into small amounts & use labelled envelopes for payments and money storage. Reduce duplicate credit usage to 1 or 2 credit cards. Use the net for bill paying and to check your accounts.

7.   Yearly savings

Making a list of all annual or once-a-year type bills (car registration, shots for pets, school pictures, etc.) and divide them by 12. Save this amount each month and, when one of these items comes up, you have the money to pay it. No more surprises.

8.   Save credit card receipts

Keep an envelope in the car for the credit cards you use. When you buy anything using a card, put the receipt in the envelope as soon as you enter the car. Keep changing the envelope every month. This will save you time and hassle when looking for receipts.

9.   Only twice a month

Separate all bills to be paid on either the 1st or 15th of the month. This enables you to pay all bills at once and on time. An added bonus is that you will also immediately know how much money you have left over for entertainment, vacation and other discretionary items.

10.   Split into Savings and Cheque

Figure out a budget based on a savings account/cheque account split. Savings builds up for things like real estate taxes, vacations, and insurance. Write cheques monthly (e.g. phone, groceries, etc.). Split your monthly income into the savings and cheque accounts according to the budget. Savings amounts are strictly budgeted. The checking account is controlled by watching the balance until the next payday.

11.   Respect your partners need for financial security

Everyone likes to buy their toys, but the overall financial security of the household needs to be considered first. I am not against toys; just save up the money first to buy them versus putting non-essential day-to-day expenses on credit.

Moreover, on ‘living within a family budget’, online users listed FOURTEEN more great practical suggestions on family budgeting:

1.   Stay busy after work

One “easy” way to avoid overspending and thus stay within your budget is to have something else to do after work. Get a second job that is fun, go to school, volunteer or get into great physical shape. The more you do, the less you will spend!

2. Watch those miscellaneous categories

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

It adds 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 to that amount.

5.   Don’t Forget to Budget for Special Occasions

When forecasting your expenses, remember to include gift-giving occasions. Mother’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. Debt Fix can assist you with consolidating debts without the burden of another loan.

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 phonecalls 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 fortnightly payments. Use envelope for each bill; put in cash every 2 weeks. Use only the cash in the envelope until it is gone.

9.   Avoid expensive friends

Avoid friends who want to go for drinks all the time or suggest an evening at home. The money you spend on drinks and snacks, can buy something better, or go into your savings account.

10.   Keep Track of Your Expenses on a Daily Basis

I call the bank’s automated line and do my banking every single night before I go to bed. I can see what debits from my debit card are posted and what my running balance is. This only takes about 10 minutes. Often people get into trouble when they try to keep a running total of what they have left in their head and get into trouble.

This question immediately suggests that it should be part of the whole family budgeting process. It is as much part of the learning around setting it up, considering it’s usefulness, function and purpose.

Creating or setting up the budget is one thing. Sticking to it, implementing and sustaining it is the ultimate goal and achievement. That is worth celebrating. Families have different ways again to use or refer to their family budgets.

For some it will be no more than a general guideline. For others it would constitute an absolute rule not to be bent or broken. Others still will use the family budget as a strategic planning tool to protect the interests of his/her family and plan for a full and happy life, setting a small amount aside for the future, invested smartly and securely, with confidence and pride.

The very day the family budget actually assists you in reducing spending and making informed smart financial decisions that is the day you do not sit back and relax, but throw all your energy back into in making it even better. This is an on-going, continuous improvement exercise, experiment and undertaking of your own making, design and creation!

The family budget can assist you in handling unforeseen increases in costs and unbudgeted expenses.

It is very common to get discouraged when on the family budgeting path. The minute you feel you have taken strides forward, something will happen, a setback, an unexpected upset or expense, breakdown, maintenance or replacement of an appliance, major purchase or repair and many other setbacks will occur.

In a sense it makes families more robust, responsive and adaptable. Tracking your finances makes you aware of patterns and business cycles, cost and many other factors that affect the home financial life and health. Rent increases, more expensive cigarettes or tax increases, higher petrol or energy prices or increased travel to and from work are but a few examples of these events and issues that might come up.

When faced with these challenges, problems or complexities, having your fingers on the pulse of your available resources, discretionary monies, savings, line of credit, rates, banking fees and more, will all help you make the right informed decision that is best for your family, at that time, act accordingly with diligence and confidence. You are in control of your financial situation and not the other way around. It enlightens and empowers you to do more with less!

Unpredictable pricing and fluctuating prices are not easy to reduce in any budget. Having this variation handy, spread over a period of time, can help you plan better and anticipate sudden spikes or higher expenditure during certain months of the year.

Emergency, contingency and improvements are not priorities for most of us when we receive our pay. To ensure a steady stream of income into these categories make “saving for a rainy day” come to life and have some real impact and meaning in our financial planning.

Cutting non-essentials first is a good strategy. Alcohol, long distance phone calls, gifts, gardening and landscaping services, decorating costs, pet care needs, recreation and lottery tickets can all be good money-saving categories. The more items you can include in your cost reduction, the greater the dollar benefit.

It should come as no surprise that by just cutting a little in each of these categories, families can easily save upwards of $240 per year without too much noticeable difference in their lifestyle or any major disruptions or sacrifices. If it is less than 1% of your total spending, it should not really cause pain, grief or reason for worry.

Family budgets can also provide hints on how to save on non-essentials: Buying more or less of a product or service, comparison shopping for the lowers possible price, bulk and discount, sale, buying a lower-priced or no-name brand. Frugal gift giving (Christmas, birthdays, friends and family) is a way to save money.

Elimination of waste is another clever way to save money that is often overlooked, BUT not in the family budget. Spur-of-the-moment clothing purchases, too trendy, uncomfortable and not the right size perhaps?

Making an active effort to participate in the family budgeting process will carry its own rewards as well. Self-discipline and curbing your own spending will soon become second nature.

• Enable families to make large spending reductions in the right places at the appropriate times

Anything from a small rent increase of a couple of dollars to an all-out job-loss can impact home life and finances, and not in a positive sense. The family budget offers you the opportunity to prepare somewhat for this, whether pro-active or responsive action follow. Flexibility and adaptability are bonuses with family budgeting.

It will spell out the reality, damage, impact, what needs to be done at the barest of minimums to get by and offer stop-gap solutions, practical and accessible, right away. It is not to say that it will have you not worrying about it! All of us will be concerned if this is our situation, but it will leave you more prepared to deal with the challenges head on and right away as opposed to wasting time wondering what to do and how bad it is.

• Protect against income reduction and inevitabilities

In the case of job loss there are also immediate realities to consider. Financial implications are huge for family life and the pressure is on. Family budgets and informed budgeting is a tool and time worth every cent spent.

Because of the heightened awareness and familiarity with the context and content of the financial, spending and cost cutting plans and strategies, goals and savings, the family budget process now offers avenues to solutions rather than barriers of debt and no point of return.

Tackling normal spending categories first, reduced transportation costs, packing a lunch as opposed to buying every day. Suspend all discretionary funding, move money in your accounts around to cover basic expenses. Luxury items and recreation, sports and other leisure activities will be another category to find some budget dollars.

Maintenance and repair costs might be suspended or delayed, cost-cutting is never pleasant but the budgeting process makes it easier to know where the cushions and ‘fat’ are, that can be trimmed or eaten away at.

Other positive job-changes like promotions and relocations could also have a lot of impact.

Taxes, relocation fees, buying-and-selling homes, settling allowances, insurance, storage etc. they all add up. The family budget will help you assess your situation more clearly, leading to better decision-making and informed empowered choice.

Any discussion on ‘How to set up a family budget will be incomplete without a section dealing with debt and debt consolidation.

Normally we use credit cards for a variety of good reasons, like convenience, business expenses, online commerce, instant accountability, unexpected bargains or expenses, medical and or other emergencies.

There are however, also very definite situations where plunging yourself deeper into debt is not a good idea at all:

• An expensive item you know you cannot afford (indulgence shopping). If you do not have the cash funds to purchase it, charging it is not going to make it easier for you to pay it! By putting it on plastic you just increased the price and interest charges. Your budget will not thank you later for this one. Bad decisions often lead us down the wrong path. You will be left facing paying for this choice for a couple of years down the road still.

• When grocery shopping, pay cash rather than plastic, or you will most likely overspend.

• Meals, drinks, nights out and other entertainment charges are all like the miscellaneous category in a budget.

• If you are truly going to be budget-minded and money conscious while trying to get out of debt, consolidating or in debt-help avoid the plastic!

• Check the interest rates on your card, consolidate accounts, go through the exercise of balance transfers and seek the advice of licensed professionals to assist and advise you, on how best to approach credit of any sort while on the mend to financial freedom, reputation, repair and recovery.

• For family budgeting purposes, credit cards are for EMERGENCIES ONLY and should not be used to pay for bills or luxury items. Carrying a high balance, missing a payment, paying less than the minimum, might negatively affect your credit rating and undermine all the other good work you were doing in your budgeting process.

• Watch out for late charges, higher rates, annual service fees, interest rates and charges, and cash advances.

• Using your credit card at an ATM for a cash advance can sometimes not be convenient, as the rate and cash advance fees can total as much as 24% or higher. This is even more than loan sharks or other payday loan providers.

• Do not use credit cards for any of the following reasons: unbudgeted expenses you cannot pay for; having no cash savings to help you with unexpected expenses, consuming more than you can afford or impulse shopping.

Debt management and family budgeting actually fit like hand-in-glove together. They compliment and strengthen each other if used appropriately and with caution, diligence and commitment to change.

It is advisable to get a handle very early on in your budgeting process on what exactly the debt situation is. For most people this is the most painful part of the process. Facing their monetary past and the aftermath of overspending, lack of budgeting and large debt!

Extreme care should be taken early on as well to protect your financial interest. Review your family budget spending categories and avoid debt by every means you can and not use it for living expenses.

Repaying your debt should be the main priority. Consulting with a financial planner, debt consolidation professional and specialist will help you answer the question whether you need to consolidate, transfer, stop using credit cards all together, file for bankruptcy or what your other options are. Exhaust all the possibilities before pursuing this route. Debt Fix can suggest options to help you avoid bankruptcy.

A personal debt review can be painful, but is very necessary to assess the status quo or where you are now and how good or bad it is.

Debt is a wide concept, covering lots of things, including mortgage, car, credit cards and other retail credit card accounts and personal loans of any kind. Loans from family or friends also have to be included, if you are honest about making a difference, repaying in a timely fashion and truly want to know how bad it really is!

Your summary sheet can carry the following headings: account, total amount due, monthly payment, total interest paid last year, and interest rate. Financial advisors call this a debt review register. It is painful to see this data, because it will clearly show the impact of bad financial decision-making. Interest paid gives you absolutely NO BENEFIT WHATSOEVER!

Strategies for debt and cash flow management in a family budget include:

• Consolidating all consumer debt (that is everything you owe, except for your mortgage) and making it a priority to pay it off in a timely fashion, getting reduced rates and maximizing your effort in wiping the financial slate clean.

• Paying off high-interest credit cards first

• Use a line of credit if you can as the interest rates are typically lower

• Suspend any kind of spending on any credit card and establish good habits paying in cash for purchases

• Use all store-based cards wisely or not at all, if that is the disciplined approach you have chosen

• Interest free credit cards often have a honeymoon period and you could qualify for them even with a bad credit history – showing restraint and good financial management by making your payments on time, every time and keeping the account up to date, will go a long way to regaining your confidence and repairing your credit.

• Utilise the service of a good credit counselling service to assist you and deal with your habitual over-spending and shopping addiction

• Use credit card statements for budgeting purposes, accuracy and tracking.

• Loans are handled no differently – the strategy is pretty much the same: find the highest loan balance and the highest rate and start paying the latter first

• Avoid any new debt

• If after a six month period you have paid like clockwork, contact your creditors and negotiate a lower rate at that time to ease the burden a little bit

Family budgets are not here to depress you even further. The fact that you are taking pro-active measures to participate in your life, sends the right signals, not only to creditors and credit counsellors, but also to the family members that care so deeply about you.

Another popular topic for family budgets is children and fun activities. How to make the most of opportunities, while living and functioning within limited means and on a budget, causes many money wise parents concern:

• “The best things in life are FREE” – you just need to know where to find them, and then enjoy them together. Being cash-strapped or budget-challenged should not minimise the fun you have as a family.

• Prioritise it together with the other members and the children in the home (if they are older), discussing alternatives like picnics, walks, visiting a beach, or a park.

• Use coupons for entertainment.

• Matinee rates for movies are a great way to save money.

• Avoid window shopping or expensive shops where you will be tempted to spend more money or leave feeling guilty that you cannot.

• For discounted, bargain-priced brand-name kids clothing, shopping at end of season sales is a real budgetary blessing!

• Budget for one very special outing you can do as a family such as a holiday (e.g. camping or road trip) every year.

There are always ways to do little things together, make memories and invest time and attention in one another that costs absolutely nothing but time, a smile, a hug or two and a caring heart to share them all with!

Organise, budget, and beat stress.

Know what you spend

Establishing a budget, and periodically entering all of your purchases into money managing software, should take the guesswork out of your finances. At the beginning, minor changes will most likely need to be made to your budget. Once you have a finalised budget, one person should be responsible for maintaining the budget and tracking finances. I sit down with my wife on a monthly basis and go over our financial results. If we are close to exceeding a budget line item during the month, I will tell my wife and we adjust our spending accordingly.

Cut down on interest

With bills happening throughout the month, people can find themselves poor one part of the month, and rich during the other. My bank offers free online bill pay, so I take all of my bills, and divide it by 4. I then pay weekly, so I always have the same spending cash each pay. It also cuts down on the interest that accrues.

Sometimes, just listening to the opinions of others opens up our minds to other possibilities we have not thought of, read about or seen in any published material, industry-related text-books or budget specialist tip sheets and ‘how to’ layouts. All the technical information, procedural and budgeting principles are extremely important if you want to ensure lasting and sustainable change. It is also undeniably true, that in this day and age, collaborating and connecting with others is how we learn.

Utilising online sources, electronic publications and shared experiences, solving common problems together is definitely the wave of the future.

These are mainly for financial issues and mostly your first hour is free. If you are in a real crunch, crises and need a budget fast, but do not have the time, then maybe the internet has the answer for you. Always remember that you are the best-informed decision maker in this process.

Taking control of your finances should challenge, invigorate and excite you. You are taking charge of your life, getting your ducks in a row so to speak and travelling down the road of fiscal responsibility and re-connection.

Handling a money crisis well and realising that family budgeting is only one piece of that puzzle, might be helpful. The expectations, problems faced, context and depth of the crisis, is as important as the steps, procedures, techniques, tools and budget worksheets you end up using.

• Admitting that there is a problem is normally considered a good first step. Asking for help is a close second. Money-matters make us do strange things. You are probably not the only one facing this situation. Therefore, take heart there is help out there. Even before getting to the how to steps for your own budget, work on your state of mind, immediate need and concerns. Consult a professional financial planner, who will assist you, in all likelihood, through and financial analysis of your situation, assembling facts and information, coming up with solutions, suggestions and alternatives you probably are not thinking of right now. Even when not under pressure or in crisis, when setting up a family budget, gather your thought, emotions, data, receipts, statements, input from others, discuss, consult, assemble, synergize and prepare to succeed. Get the most appropriate, accurate information you possibly can before setting up any expense categories or filling out worksheets. Get and extra set of eyes to look it over, you will not regret it.

• Rational, clear-minded, level-headed and ready to take on any challenge – include setting up a personal and family budget, income, expense statements, asset-liability summaries, expense categories, line items, amounts, estimates and more. Be committed to succeed, with a positive attitude and financial resourcefulness will serve you well in any situation, no matter what the money crunch or reason for your budgeting need may possibly be.

• Take responsibility and have realistic expectations.

• Take some risks when required. Be pro-active and explore your options. Do not hesitate to tackle controversial topics or expenditures, even if it can lead to conflict and disagreement. Couples and finances have always caused some difficulty, so it is all normal. Stabilize your situation, salvage what you can and move on, focus forward. Family budgeting has the past, present and future continuum all covered.

Somone suggested that there are eleven steps in any new money management endevour you undertake where personal interest and stake is high:

Step One:       Change Your Expectations and be Realistic

Step Two:       Tell Yourself the Truth

Step Three:     Decide How to Pay for Necessities

Step Four:       Identify Your Assets

Step Five:        Discover How Much You Cost – this is how much you spend and your   contribution to the situation and the circumstances

Step Six:          Calculate What You Can Afford to Cost – cost cutting and balancing your     budget

Step Seven:      Call Your Creditors – dealing with debt

Step Eight:        Quit Paying Late Fees – work with professionals

Step Nine:         Create a Family Budget

Step Ten:          Do Not Ignore the Following: Parking tickets, Fees, Car payments, that  need to be pulled into your situation to assist you as best they can

Step Eleven:      Manage Your Money Every Day

It is no surprise then, to even find the ever-popular ‘budgeting’ concept among these listed must do’s to re-collect, re-orient and return to financial freedom and avert further money-related crises!

“Creating a budget” captures in its expression and meaning, both the excitement and the apprehension most of us feel when we have to face our financial situation and or lack of planning and accountability in that area.

Most businesses would fail if they ran like we manage our household incomes sometimes. This is not a natural thing for people to want to do. It falls into that ‘I will if I really have no choice’ kind of categories.

However, worth mentioning is that we spend most of our waking hours at work, earning the cash we need to get by and cover our living expenses. Then, we do not take the time to plan what to do with it. We just respond, spend and move on, spiralling, circling around, aimlessly and oblivious mostly about the state of our financial affairs.

This is obviously not true for some of us, for whom planning and organizing comes naturally and budgeting is like second nature and breathing, we just do not think about it, get it done and then barely spare it a second thought. Both these types of approaches can hurt us in the long run.

Our society has also become so fast-paced and focused on success, that we sometimes lose sight of the future perspective, enjoying life and what we do have. We cannot really focus on our own financials for lots of “excuses”, sorry reasons we provide like: trouble slowing down, taking a step back and evaluating our financial situations or not knowing how to set up a family budget.

One of the first hints or tips we provide is advocating financial awareness. This means evaluating openly, freely and honestly where things are at today for your finances and household.

The whole purpose and goal of creating or setting up a family budget is to enlighten and alleviate money pressures. Utilising a tool that can assist you in getting back onto the road to financial freedom, financial responsibility, budgetary health, positive cash flow, with money to spare would be the ideal! As the previous pages have shown the process in itself is not altogether that difficult.

You can certainly see how this real-time, ‘dollar and expenditure tracker’ can assist you to be agile and respond to market, family and monetary pressure, changes and crises. Continue to revise and update your budget as your needs, family and circumstances change.

Money is such a daily necessity and ever-present in our comings and goings. We have different currencies, structures, procedures and all around the world, but in the end, it is the currency that makes the world go round, fuelling the global economy.

Seen from that perspective, we often feel that taking control of our own finances and expenditures will not have much of an impact, as we are all at the mercy of the wheels and gear of a churning economical machine, with government and banking rules, regulations, trade and principles, ethics and decision-making that affects our quality of life.

Good money management skills in the household is crucial, not only for survival and good financial state of affairs, it teaches our children how we think handling money should be taken care of. They watch us so closely.

We model certain behaviours, spending patterns, discipline or maybe throwing all caution to the wind with credit card spending, debt and reminder notices all over the house, creditors calling, afraid to walk to the mailbox to remove the bills, and more.

What chance do our children have to end up entangled in that spiralling and vicious circle we spoke about earlier? Money in, money out?

How do we get to the point where family budgeting is a learning tool to help us teach our kids to work better with their funds? Whether through allowances, mutual savings goals, their own account or more, as parents we have an opportunity to instil some solid financial skills early on in life that will assist them later, as they work toward their independence and family budgets of their own!

Do some soul-searching before you start your budgeting process. How motivated are you to plan, set-up and stick to a budget?

Then let us get started, together. There are lots of practical suggestions for setting up a family or household budget. We will never be able to cover them all or the mechanics and intricacies all at once. You will however continue to find in these pages valuable insights and tit-bits to help you pursue better financial management and cash flow, budgeting in general.

It is all about making your dollar go further. Investing in the time and effort that it will take to get to that point of greater financial security and possibly even have a surplus eventually!

1: Take stock and face the facts head-on, honestly and with serious commitment, drive and purpose. Assessing your own capital worth and analysing your home life and situation from a financial perspective is of utmost importance.

2: Plot your own course. Formulate some financial goals and lay out your own roadmap on how to get where you need and want to be, financially speaking.

3: Take a thorough, critical and factual look at your fiscal situation and status. Unbiased and honest is best. Get a most recent credit report and look over your bank and credit cards statements, tax returns and other financial sources of information.

Get a financial planner to assist you if you are unsure about what to use and include or exclude in this assessment. You might also want to take a broader perspective and discuss retirement, priorities, insurance needs, wills. The time is now and the place is here to take control of your financial situation and life.

4: Committing the time and effort to build your financial action and spending plan, budget and goals should get priority and might just be the most valuable undertaking and time well spent, not wasted you might ever set aside!

5: Think of how you define your own financial worth. Reflect on what it is, what you base it on. Is it concrete data and fact, perception or maybe even a wild guess or estimate?

This side of the balance sheet for most people remains fixed and is relatively easy to do, when they put their minds to it.

6: Always remember that this process and document known as a family budget is only going to be as good as the data and updates you provide! When acquiring new assets, ensure that this side of the balance sheet is strengthened appropriately!

7: Adjust your focus slightly to more in-depth and longer term. We live so much in the moment, especially if we purchase things or spend money. We just look at the cost today and do not think of the total overall cost (i.e. the cost plus interest over time).

8: Actually setting financial goals will also energise you; give you a reason to work towards something meaningful. You might even start to enjoy uncovering opportunities for frugal choices, ‘penny-pinching’ and what we prefer to call creative savings techniques!

9: Become financially literate and master the family budget process. Demystify some of the complexities and just try some financial responsibility, without being overwhelmed by the intricacies of calculations and more.

Remember, there is always professional help out there, once you have gotten started, completed the groundwork to move in and on to a comprehensive consultation with a professional financial planner, who can explain the lay of the land and the impact of your situation and plan in more detail.

10: Family budgeting can be used to teach you good financial habits: get in the habit of paying in cash, using your credit cards only for emergencies.

Learn how to stop buying on impulse and use your willpower to walk away, say no thank you and leave it at that. Shop at wholesale and discount department stores. Respect your budget limits and stick to it.

Always try to find ways to supplement your income, part-time jobs, your own business or rent a room or floor in your house, offer storage, invest in real estate and consider taking in a boarder or tenant.

Turn your heater way down in your house and turn off a few lights. Eliminate areas where heat and energy is lost. Cut back on home and mobile phone use. Check insurance policies shop around and raise your deductible to lower your monthly bill.

In isolation, these probably do not have a lot of impact individually, but when they are combining in a well-planned, cleverly executed family budget, with discipline and consistency, they will start to make a difference and you will start to see the benefits that will impact your bottom line.

11: A family budget is a learning tool and process to empower individuals and families to better self-manage their financial resources, spending, cost cutting and household finances. In general you will be able to set-up your own personal or family budget.

By tackling the skill and mastery of smart budgeting, you will have a greater understanding eventually of exactly where and by how much, you need to adjust expenses to either live within your means or know how much extra you need to maintain your current lifestyle.

12: Other family budgeting process steps will require you to be able to identify and categorise all your expenses and, coupled with an easy filing system, create the backdrop and framework for all future budgeting and fiscal planning at home or elsewhere.

13: Family budgeting is not something that is taught by parents or schools; however it is such a simplistic concept, process and task that it is almost unthinkable that we are not placing greater focus on it these days.

In the end, it is all about what you do to make ends meet. To be in charge of your finances, family budgeting gives you a sense of real understanding and control over your money, not the other way around.

14: Family budgets allow you to gain knowledge you would otherwise not have had at your fingertips, concerning your own and family finances.

For example: Knowing where and what expenses you can affect or effectively change, to cut costs appropriately, timely and immediately in certain cases is very helpful.

15: To enable your family budgeting process set up an easy and orderly log, record-keeping and filing system; and make spending notes often to track your money and habits.

16: Understanding, explaining and sharing the benefits of good budgeting with others is pivotal, to get them on-board and participating actively in the family budgeting process. Ask for their ideas and input. Two heads are better than one in most cases. They might think of savings opportunity, consolidations and/or things to do without, that you did not even think about or considered for a second!

17: Here are some more family budgeting summary steps to remember:

• Identify and categorise all expenses – look at categories and line items, types and timing of expenses, amounts and budget accordingly. Remember categories like miscellaneous, discretionary, maintenance, emergency and others. These will also provide you with a little more flexibility when you do have to massage your money, budget and cash flow processes to meet need, demands and change.

• It is of utmost importance that we are able as family budgeters to allocate and adjust expense items, prioritise need with foresight, discretion, informed choice and empowered confidence, stemming from core and in-depth knowledge and accurate information.

• Practice utilizing a basic budgeting framework and recording method in your family budgeting and formulate your very own personal and or simple ‘Home Budget’ or rough first draft of your financial situation. Chances are you will see and learn something you did not know before.

• Even if you feel you just have a basic understanding of budgeting and how it can improve your own management of your own and household finances will make a big difference. Take the time out to explore and try putting your first one together, following the steps given earlier in this booklet.

This guide and its content, will appeal to almost anybody:

• anyone who recognises the need to budget;

• those who have never or not yet learnt how to budget;

• individuals or groups who are looking for a first-step debt-consolidation strategy and technique,

• someone who has come into some money through a lottery, casino win, gift or inheritance and want to ensure they know how to budget properly before they start spending left, right and centre.

• It fosters independence and fiscal responsibility and accountability.

• Even those with reasonable income, now receiving less, will find some answers here.

• The one who needs to understand expenses that need to be adjusted; and even those who prefer to feel and be in control of their expenses.

• Family budgeting enables them to be in the position to know where they need to modify their lifestyle and make significant adjustments to ensure a bright and happy financial future.

Some of the most important process elements and content pieces of family budgeting to read more about, study, learn and practice, hone and refine are:

• A fundamental understanding of the principles merits and mechanics of budgeting and the budgeting process itself. All the process steps to get your through the journey and to the resulting document, tool or magic numbers!

• Distinguish between fixed, variable and discretional expenditure(s)

• Identify and categorize all expenses, breaking them into categories and line items, time-frames, other detailed sub-classifications and clustering;

• How to set-up housekeeping budgets and what to consider

• Identifying hidden expenses

• Identifying areas of discretionary spending, habits and perhaps over-spending risk areas

• Setting up expenditure recording systems

• Decide on the best way suitable for you and your family to monitor what you spend

• Set-up a very basic Home/Personal Budget Filing System

• Any calculations, formulas and budget principles you think will help you maximize and optimize your cash flow and money-management

Another great way to learn about family budgeting is to ask around and to learn from others. With the internet at our disposal, there are numerous reliable sources of practical, tried, tested and true tips, strategies and techniques to follow. We selected but a few to provide a sample. Never underestimate the power of a shared experience!

Sometimes exploring a financial activity like family budgeting conceptually is not enough. Getting a practical perspective, with some hands-on tips is more meaningful than superficial description or analysis.

There are lots of definitions, opinions and numerous books have been written on the subject of budgeting for families, by families and others. In our information-age, knowledge is power these days and lots of parents and professionals share and voice their opinions openly on the internet, sharing and growing the body of knowledge. We selected a few examples to encourage others to explore these at their leisure as well.

This brings us to the family budget process. We might ask questions like:

• How to set up a family budget?

• How should a family budget be used?

Insights around the tools and techniques of family budgeting could also be useful:

• Practical suggestions for setting up a budget?

• A step-by-step summary of a family budget process

• Hints, tips, tricks and tools for setting up a family budget

To get us started and in order to set up a monthly budget, follow these five easy steps:

Step one: Find out your monthly take-home pay

Step two: Find out what your expenses are

Step three: Find out how much you spend on each expense

Step four: See if your monthly expenses match monthly take-home pay

Step five: Balance your budget. This means in your family budget you need to ensure your sending matches take-home pay. It might indicate that you have to cut back on spending to balance.

It sounds too good to be true and too simplistic. However, in the end, that is all there is to this family budgeting process! Initially at least. Let us look at these steps one at a time.

• Finding out your monthly take-home pay

Your income is your pay, after some money is deducted (eg tax, deductions etc).

What is your monthly take-home pay? Do other people share expenses in your home?

As mentioned before, total all of the households’ monthly take-home pay. This will include all sources of income for all contributing members of the household.

• Finding out what your expenses are

This brings up other pressing questions: What are your monthly expenses? Where does the money in fact go every month?

Most people are surprised to learn that it may go for things that we do not need at all. Writing your expenditures down provides us with the unique opportunity to visualize and find out if any money goes for things that we do not need or want.

Here is a short list of expenses that many people have. Put a tick next to ones you have, then write down any expenses you have, that are not on the list.

• Necessities like food

• Clothes

• Car and transportation expenses: petrol, oil, parking, license, registration, car repair, public transport

• Rent, mortgage payments, power, phone, water, taxes, house repairs, appliance and repair, furniture, small items for home, cleaning supplies

• Medical and dental expenses: doctor, dentist, medical needs, hospital.

• Savings: short to medium term for something soon, a future purchase, emergencies, investments.

• Installment payments: car, furniture, appliances, charge accounts, credit card accounts, loans.

• Pocket money, personal allowances, tobacco, beer, wine and hair care.

• Entertainment, movies and eating out, sports and equipment, club membership, newspaper, magazines, cable TV, internet, DVDs, vacation, letters and postage.

• School bills, books, room and board at school, workshops, courses, lessons, music and more.

• Donations other and gifts

• Insurance: life, health, house, car and property

• Taxes: if not deducted from your pay

Which other ones could you list?

Finding out how much you actually spend on each expense

This is the hard part, where some thought and effort will have to go into the process to ensure the most accurate information is recorded. This will give a realistic and real-time estimate that is reliable and accurate.

In this section, you need to ask yourself how much each item on your list actually costs how much each item costs you a month.

The following estimates and guidelines could prove helpful to you as you set up your family budget:

• Monthly bills that stay the same – car and rental payments

• Monthly bills that change – utilities, phones and more. Find costs per month for say six months, add them up. Take this number you have calculated and divide it by six (the amount of months) to get your average cost. This is the number you will be using for your budgetary exercise.

• Bills that come every three or six months – the number for every month will be used in your budgetary process.

• Bills that come annually, meaning once a year – divide the amount by 12 months. The answer is your monthly budget number.

• Bills that come more than once a month – food, fuel, lunch and family fun. This is a category to watch very closely, as it is a contributor to this “bottomless pit”, we sometimes feel and see our cash disappear into.

• Unexpected expenditures or surprise bills – what you can afford to set aside as a buffer or emergency, contingency fund – (look at the last three years or so and see what kind of unexpected expenses you and your family faced). Use an estimate that makes sense to you and divide the annual number by twelve months to get your monthly number.

Finding out if monthly expenses match monthly take-home pay

Compare your total expenses with your take-home pay. A couple of results and scenarios could be staring you in the face:

Positive result: Income more than expense – you can either spend or save!

Negative result: Expense more than income – spending more than you have, you might have to cut costs and try to save some money to cover the bases!

Whichever of these outcomes you are faced with, knowing is better than not knowing. For some this might bring little comfort and relief, but people in general, find this exercise useful to make an unknown more measurable. It makes us both accountable and wanting to act, faster and that sense of urgency and momentum is just what the family budget process needs!

Finding ways to balance your budget

Earlier it was stated that a good budget would mean income would be equal or less than expenses. Having a small surplus is no guarantee by any means. You might need this to cover an unexpected rise in petrol prices or a larger grocery bill due to a party you are hosting at home.

This almost brings the concept home of a sliding scale, flexibility and discretionary buffer categories in budgets to absorb this give-and-take roller-coaster ride that is family budgeting.

The good news is whether you are in the red so to speak or just scraping by, managing to save nothing or maybe a little, or even a lot, this process will highlight areas where your attention is needed right away. It gives direction and purpose and assists families to formulate their spending plans, goals, re-visit their needs, dreams and goals.

Balancing the budget is no easy task. Here are a few steps that we can suggest to make your life a little easier:

• Find out how much you need to cut from your expenses.

• Decide you can make cuts in your expenses and be detailed.

• Re-balance your income and expenses after you’ve made these cuts.

A word to the wise: Do not make cuts in your budget that you cannot live with in real life. It is extremely important to remain realistic and keep your real-time expenses and living realities in the forefront of your mind when you make these decisions.

If you’re getting out of a situation where you are in debt and short of cash, you have to try to curb spending any way you can. Cutting those expenses are crucial, not only because you are over budget.

We mean that there might be other reasons, like adding a budget-line to your overall planning for your family holiday.

Cutting a little here and there will mostly do the trick – cancel unnecessary costs. Do you need all the channels and packages on your Pay TV options? Can you live with giving some up?

There is always the liklihood of rising prices and interest rates, inflation and more to cope with as well, so building preparedness for that into your budget is also a priority. Whatever we can do to cut our costs and expenditure will benefit our wallets and family budgets immensely!

Cutting back on things you need the least is a good starting point if you are at a total loss as to what and how to give something up, add a new line into your budget or plan for the future or inevitabilities. You are well on your way in the family budgeting process. You are doing it, every step of the way. Consolidate and re-visit your budget often – it is a dynamic process and ‘living’ document to help you keep your fingers on the pulse of your financial situation.

Another useful strategy is to set up a bill-paying plan and process that will protect your interest. When, how and how much you get paid will all influence your course of action. Creative and innovative allocation of your pay is the key.

If you get paid once a month, the amounts in your budget will have to be paid monthly. If you get paid fortnightly, divide each budget item by two – it will not be the exact amount to plan for, but a rough and close estimate. In the end better than nothing!

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. Utilise 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 wallet 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 behaviours will emerge that might surprise or shock you!

Having some 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… 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 stay out of debt, pay your bills on time, every time, keep track of your spending, cut costs and stretch your dollar to the max!

Many people make an honest attempt to budget, but become discouraged and give up before they are able to accomplish any significant financial gain. The top three causes of budget failure come into play before you even begin to set up your budget. Awareness of these budget failures is your first line of defense in the Battle of the Budget.

Budget Failure #1 – Negative Attitude

It cannot be emphasized enough – a positive attitude about budgeting is essential to your success. If you think of budgeting in negative terms (such as a financial diet, financial handcuffs, restrictive, penny-pinching, a sacrifice, etc.), you are sure to fail, unless you are a martyr or a masochist who finds some strange reward in a punishing experience. For purposes of this article, we will assume that you are neither.

A positive attitude means you think of a budget as a means to an end – a way to achieve your dreams and goals – and that postponing the instant gratification of spending all the money you earn is worth the rewards you will earn in the end.

Budget Failure #2 – Lack of Motivation

What is your motivation for budgeting? Are you trying to appease a nagging spouse? Following the terms of a debt repayment plan with a consumer credit counselling agency? Complying a court order ? These are not bad motivations, but they are external pressures and will probably not be easy to maintain over time. The best motivations are internally generated: do you honestly believe that budgeting can help you meet your goals?

If you need a little help in the motivation department, see “Twelve Reasons Budgeting Can Improve Your Life”. A quick re-read of these will surely inspire and ignite a motivational spark or two!

Budget Failure # 3 – Unrealistic Expectations

What do you expect to gain from instituting and following a budget? Do you think that setting up a budget will reveal large caches of hidden cash or that the budget fairy will sprinkle fairy dust over your budget and magically transform your spending habits after a month or two of tracking expenses?

The reality is that budgeting is an endurance event – those who stick with it, through thick and thin, will come out ahead financially. Do not expect miracles. What you WILL see if you stick with it is steady, measurable progress towards the goals that really matter to you.

Starting a budget without having a positive attitude, internal motivation, and realistic expectations, will probably set you up for failure. You can greatly increase your chances of success by ruling out the three biggest budget failures before you even begin.

Family budgeting – just the thought of it makes most of us cringe. However, mostly, we do attempt to curb our spending and live within our means. Others fall into bad habits, habitual spending patterns or impulse shopping and over-extend themselves, landing knee-deep in debt!

Ironically, one of the first remedies for any debt consolidation or repair strategy is to take a long hard look at the budget and financial patterns within the household! It is almost like running a diagnostic.

To take a closer look, you are in effect placing your family dollars under a magnifying glass. This can prove both challenging and painful for most people. We hope to alleviate some of that initial discomfort and apprehension with this handy step-by-step guide and tips.

Most financial advisors will tell you that you have to reward yourself for good fiscal responsibility, discipline and habits, to increase your motivation and success levels.

Budgeting is the first step, sticking with and to it, a close second and the sometimes overlooked but ever-important reward, has to keep the motivation going! To repeat and continue to experience the benefit of the budgeting cycle and discipline could be an uphill battle, but there are calmer seas ahead.

Cash management, savings, planning for retirement, setting financial goals etc. active and hands-on, is becoming increasingly important for our financial survival.

Be your own best expert with coming up with new ideas on how to save money, budget better and spend less! Your unique strategies stem from a deep understanding of your own situation, demands, and needs. Discover which tips and ideas work best for you. After all, financial management is definitely not a one-size-fits-all solution environment. It is personal, customized and unique.

In the following section, we will briefly refer back to the family budget defined and look at some of its elements and criteria, purpose and functions.

• What is a family budget?

• What constitutes a good family budget?

• What should it contain and look like?

What is the family budget again? It is a pro-active, hands-on approach, focused, technical and disciplined strategy to getting a handle on the current financial situation in the home and family.

It concerns setting realistic, SMART financial goals for the household, sticking to it, celebrating successes, learning from failures and trying again if you do not succeed or get it right the first time round. It is about shifting focus completely from a mainly spending to a savings orientation.

We have laid out what a family budget is, does and affects. A brief mention of what constitutes a good family budget and the elements that it contains as well as its appearance, format and functional role follows.

All of us have a wish list of new things that we want. There are always things we would find and places to spend our money. Take the time to make a list of these things. Let everyone who shares cost in your home to have input into making and finalizing this list. Write down what you want most. Beside the goal, write how much it will cost. Split it into goals with ongoing costs and the cost per month, and goals with a one-time cost and list the actual total cost (including all hidden fees, taxes, shipping and or other charges that might apply. Now, next to these columns, start to prioritize these goals.

Which goal comes first? You need to decide which goal on your list should come first. Talk this over with the other members of your family. If you live alone, think it over yourself. Try to list your top four goals and decide what you can fit into your budget.

A ‘good’ budget is in the eyes of the creator or beholder alike! Some suggested, but by no means comprehensive criteria follows:

• Budget is both process and product

• Collaborative, engaged, hands-on effort

• Characterized by communication and mutual agreement

• It advocates involvement and exchange

• It is real-time and reality-based

• Factual

• Accurate

• A financial check-up and check-in on the family finances, household dollars, situations, behaviours, and resources.

• An action-plan, future-oriented

• Offers a peak into the past, scrutinizes and enlightens the present, while planning and promising a future

• Goal and results oriented

Here are twelve good reasons to get you started:

1. Family budgets are used as a baseline, analysis-tool and roadmap. It is a useful tool and guide. It tells you whether you are headed in the direction you want to be headed in, financially. It helps you to move from spending to saving and good fiscal balance, management and responsibility.

You may have goals and dreams, but if you do not set up guidelines for reaching them and you do not measure your progress, you may end up going so far in the wrong direction you can never make it back. Can you imagine the government or a major corporation operating without a budget? No and neither should you.

2. It is often described and justified as an empowering enabler. A budget lets you control your money instead of your money controlling you.

3. A budget is a realistic estimate and true reflection of current circumstance and means, a type of financial situation-analysis that will tell you if you are living within your means. Before the widespread use of credit cards, you could tell if you were living within your means because you had money left over after paying all your bills.

There are lots of family budgeting tools available on line that make it a fun and enjoyable task and activity, to assess and analyze your family’s financial situation with minimum effort. (www.debtfix.com.au)

The availability, accessibility, virtual marketplace, ease of use of credit cards has made the need for family budgets much less obvious. Many people do not even realize they are living far beyond their means until they are knee deep in debt, struggling to make ends meet and sinking fast into murky financial waters.

Budgeting is and can be a life and money saver, a reality check, BUT ALSO a remedy!

4. A budget can help you meet your savings goals. It includes a mechanism for setting aside money for savings and investments.

5. Following a realistic budget frees up spare cash so you can use your money on the things that really matter to you instead of frittering it away on things you do not even remember buying.

6. A budget helps your entire family focus on common goals. It is unifying families in mutual purpose and effort, working together towards a successful outcome and reward.

7. A budget helps you prepare for emergencies or large unanticipated expenses that might otherwise knock you for a loop financially.

8. A budget can improve your marriage. A good budget is not just a spending plan; it is a communication tool. Done right, a budget can bring the two of you closer together as you identify and work towards common goals and reduce arguments about money.

9. A budget reveals areas where you are spending too much money, so you can re-focus on your most important goals.

10. A budget can keep you out of debt or help you get out of debt.

11. A budget actually creates extra money for you to use on things that matter to you.

12. A budget helps you sleep better at night because you do not lie awake worrying about how you are going to make ends meet.

Nevertheless, despite all these wonderful reasons quoted above, people are still hesitant to commit to family budgeting as standard practice in their households. We might again want to probe a little deeper still and ask why?

How to budget?  Some general strategies are helpful in assisting families to set up a budget or budget better.

• The first significant step is to change your thinking about money, shift your attitude toward spending, actually focus on saving money, planning ahead and driving for success.

• Develop a greater awareness of how you earn, manage, save and spend money.

• Awareness of how others would lure, entice and want you to spend your money (advertisers, retailers,  and manufacturers).

• To stop participating and playing the “Keeping-up-with-the-Jones’s game,” living with a false sense of wealth and security, while over-extending yourself and your financial resources, beyond your means.

• Delay purchases.

• Set solid financial and budget goals for yourself and your family that you can work on individually and collectively to achieve together.

• Set spending limits and stick to them.

• Do not make ends meet utilizing credit cards, stay away from ATM machines, cash advances, do not cheat on your budget.

• Understand your income – know where the money is coming from and how it varies.

• Understand your expenses – monthly and irregular, unexpected expenses.

• Set a few realistic financial goals.

• Know your own habits, spending, temptation, and where the areas of risk and exposure are.

• Set up savings and spending mechanisms that work, reserve and growth accounts and have the right number of credit cards.

• Make an income plan – detail is important.

• Plan your obligations and must pays – smooth out large size bills with reserve accounts.

• Plan your necessities and look for ways to economise.

• Set aside pocket money for daily incidentals.

• Create a family allowance to cover entertainment.

• Create a personal allowance.

• Balance and consolidate, wise decisions and trade-offs – agree and stick to it.

• Live happily on a budget.

• Welcome to frugal living mode! Cutting back on living expenses – alternatives for simple living.

• Re-examine why you work and how you live.

• Stop tossing your hard-earned cash away.

• Celebrate when you have money left over at the end of the month – indulge a little and reward yourself – rewarding patience and persistence! Not just the doing good and sticking with it.

‘How to set up a Family budget’, is advocating a new code of fiscal honour for our families, so to speak. It proposes family budgets, that ask for wisdom (best choices and decisions), discipline (sticking to it), honesty (no cheating), persistence and celebration when we do it right!

How do you define financial worth? Is it cash in the bank, savings and checking accounts, stocks, investment portfolio or home ownership?

Remember, anything you have that is of value counts. All your assets form part of your financial picture and health. Ask yourself: What is your take-home pay, after deductions? How are you paid? Is it monthly, weekly, fortnightly? Then you need to budget accordingly!

Think about all other sources of income, temporary, seasonal, part-time – extra income, found money and bonuses that you might have.

Try to find ways to do without some small creature comforts and pleasures to reap bigger rewards later.

Starting small, early and now, with discipline and commitment, a steady, consistent pace and an amount every month, tracking and optimizing financial phenomena like ‘compound interest’ (which we will describe later), will all feed into this process.

We will take this journey into budgeting together to see how it can change lives.

Back to listing assets and thinking about savings: consider all banks, savings and loans, credit union accounts, deposits, other accounts you might have. All liquid assets that can be readily turned into cash need to be included.

Consolidate accounts if you have too many accounts spread out and save on banking fees. Improve tracking actual spending better and more easily. Earn higher interest and have less exposure to identity theft or fraud by getting a good handle on your current situation.

For most individuals and families alike, this step is quite a revelation. It forms the basis and baseline for deeper analysis and scrutiny.

Other assets might include things like: art, precious metals, sculptures, paintings, collections, antiques, jewellery and more.

Most of us are used to having a short-term focus on money and budgeting. A paradigm-shift is required to move us towards a more in-depth, longer-range view and planning.

Set short, mid and long term goals, have a definite structured plan, read up on family budgeting, personal financials and fiscal management strategies. All of this will help us focus on what is important for our needs, requirements and circumstance, while keeping financial discipline and budgeting in the forefront of our busy lives.

This is never an easy task amidst all the hustle and bustle that is our daily lives!

Most of the published literature on family budgeting in general centres around how to get out of debt, stay out of debt and live a full and prosperous life.

Some suggest frugal living is the answer and offer ‘your money or your life’ perspectives, where you cannot necessarily have both. There are many examples advocating the cheapskate monthly makeover that focuses on shaving costs off expenses and living frugally.

Market providers both online and offline, offer various budget kits which offer worksheets and more, and there is always the handy tip-like guides to living on a budget.

Other sources focus on becoming totally debt free, debt proofing your life, getting a life and choosing simplicity or how to address credit card debt and expenditure.

This ‘how to’ guide is a little different.

We have chosen to take a very hands-on, practical approach to financial management and get you started, walking through the budgeting steps and set you up, sending you off, well and good, on-course to solid budgeting in your family and household!

This brings us to the Who, What, When, Where, Why and How part of the discussion. These form the dynamic, interacting and inter-dependent elements, systems and processes that form “family budgeting.” Who? Every family situation is uniquely different and distinctive. There is no one-size-fits-all answer and solution for everyone.

Some of the tips in this guide might apply to your unique means and circumstance, and others may not have any significant impact or practical application at all.

In general terms, you will find handy ideas, hints, process steps, practical savings suggestions and budgeting that might have gone unnoticed before.

The information provided is general and should be evaluated on an individual and contextualized basis. Remember to consult a financial advisor when making financial decisions that could affect the financial health, well-being and future of you and your treasured family.

There are various different families in question here too: single-income, single-parent, blended and/or extended families, double-income households, stay-at-home mothers working part-time from the home to make ends meet, Centrelink and/or subsidised families, families at risk, divorced households with shared parenting and financial responsibilities, debt-ridden / bankrupt families and numerous others. We hope to offer something for everyone.

What? Family budgeting is a structured process and planning activity, dealing with a family’s financial resources and context.

This hands-on approach puts expense items into categories as another helpful strategy. This is done to get a better handle on the current situation and offers somewhat of a reality check to most that choose to undertake this journey.

Some of the categories could be:

• Obligations – list each item under headings like: home: mortgage or rent; association fees and professional dues; insurance: health, auto, home, renters’ and life; tuition, day care; loans: car loan, student loan, bank fees and interest; taxes, property rates and so on.

• Necessities – again list each item under headings like: food, groceries, gas, garden maintenance, security, pest control, utilities: gas, water, electric; school lunches, household supplies, car maintenance, household repairs, internet service, dry cleaning, cable TV and more.

• Misc. expenses – treat this as a whole category, covering: lunch at work, snacks, coffee, drinks, parking, tolls, newspapers, magazines, postage, mail.

• Family Allowances – another whole category including items like : parties, entertainment, weekend outing, movies, concerts, other entertainment and events, home improvements and decorating, magazine and other subscriptions, dining out and fast food, furniture.

• Personal allowances – clothing, hobbies, personal recreation, books, CD’s, personal grooming, alterations, personal gifts, luggage, night out with friends, gardening, films, processing, dvds, sports/recreation, family gifts, contributions, donations, computer software and other related items.

When and Where? In the interest of brevity, we combine the next two facets. Our best assessment to answering when and where the best place and time would be to start a family budget would be to answer unequivocally: HERE AND NOW!

It demands attention as it directly affects our daily lives and well-being. Without delay, hesitation or postponement, we need to step up and protect our family interest, financial health and future.

Accounting brings accountability! A wealth management guru is often quoted as saying. This rings so true. It is hard to ignore, if we are confronted with objective cold hard financial facts that tell us that we are in trouble.

Why budget? Families, as mentioned before, have diverse reasons and motivations for budgeting. Briefly summarized, people budget for a few reasons:

• To gain control of their financial life, monthly bills and spending

• Be prepared and avoid surprises

• Save for a major purchase

• Opt out of a vicious circle of ever-spiraling debt or spend-now-pay-later thinking

• Expand their lifestyle(s)

• Retire early

• Eliminate money as a source of tension and topic for argument

• Rediscover that the best things in life are FREE!

• Becoming self-reliant and empowered to know that debt does not rule their lives anymore!

We promise even more on this a little later!

Unlike the quote provided above, seemingly reflective of general opinion on family budgets today, we will attempt to take a much more positive approach to budgeting, as a family oriented, user-friendly, financial management and planning tool and life-enabler.

However, when reflecting on family budgeting and inquiring as to why not more families are actually using it, it becomes self-evident that similar scepticism runs rampant and deep in reality and society, even globally so.

Once you start probing family budgets, expending time and energy researching the subject in-depth, it becomes quite clear, that most families are caught in a vicious, almost never-ending cycle of “What comes in must go out.”

Most families might feel that budgeting is a futile effort, unnecessarily burdening them with thoughts and ways, to go broke methodically and slowly, without the creature comforts and indulgences of our human modern-day society.

Others might voice that they feel as if they are merely throwing money away, in a never-ending and dizzying spiral of spend, spend, spend. People are getting deeper and deeper into debt, no matter how hard they try to get out of it. Questions are then raised : How do we stop these courses of action? How do we change the thinking around family fiscal discipline?

Put simply, in “How to set up a Family Budget”, we focus on how to empower families to set up better, more realistic budgets, stick to them and celebrate their successes (and learn from their failures!)

Families eventually do have a monthly surplus, see their savings start to grow, consolidate their debt, set aside discretionary funds and personal allowances, build their wealth and become more aware of their pro-active involvement and responsibility regarding their lives and finances. This is when excitement builds and fundamental thought patterns as well as spending attitudes are changed.

Budgeting is seen as an accurate measurement of success when significant behavioural transformation is taking place on the landscape of the family budget.

Do you ever feel that you do not have enough cash at the end of the month to pay bills and buy necessities of life? Are you barely making a dent in your credit card debt balance, no matter how hard you try?

Here is a reality check for all of us: if we choose to spend it, it is gone for good. We cannot spend it on anything else. Are you perhaps worried about a nest egg for your golden years or savings for early retirement? Then you have arrived at a source that can provide some prudent tips on how to start, implement, finish, stick to, revise and refine a family budget.

The family budget is a dynamic process, even more so than a mere static work-product, result, process-outcome or document. It will, can and should change over time. It becomes a barometer of a family’s fiscal circumstance, resources and health.

Maybe budgeting is not as much about reflecting on what you cannot have, but more about thoughts on how to stretch, invest and spend your earned dollars more wisely. In short, it is about making your money going further.

This quick-reference how-to guide was developed to assist you with setting up your own personal, household and family budget, to help you with all of the above and more!

A couple of general money-savings will also be provided in these pages. There are also thoughts and spending patterns that need to change, in order to become fiscally more disciplined and many techniques, attitudes, habitual behaviours that we need to un-earth, evaluate and possibly change, before you even start budgeting.

For example, being a bargain hunter looking for good buys, cutting down on careless spending, being on the lookout for careless credit card spending and letting the person who handles money best in your household actually take care of it, are all good examples of what we mean.

For most households, a budget is no more than a spending plan. Any spending plan can help you see where your money is going. It fits your spending to your income. It reflects how we get the things we want and need most, while being ready and prepared for bills we must pay every month.

For most families it is simply about making a budget you can live with and stick to easily. It is not a difficult exercise, but one most people fear, avoid or dread because of the unknown and perceived complexity of it (sometimes wrongfully so!).

Part of the goal of this guide is to demystify family budgeting and highlight an easy systematic process to setting up a quality family budget.

Many things actually drive our expenditure. We choose to spend our money on things we value, need, prefer or consciously choose. For some it is clothes, for others it might be something as simple as taking that yearly vacation.

Whether you are making financial decisions for yourself or your household, you might have to make some serious choices and adjustments regarding your financial freedom and situation.

“How to Set up a Family Budget”, is a quick-reference, easy, how-to guide, meant to take you through the typical, who, why, when, what, where and how questions typically asked when considering fiscal planning for the household and or budgeting in general for your family need, means and circumstance, now and for the future.

Budgeting is not just about restricting spending and living a cheapskate life. It is about insights, wisdom, informed decisions, action and sustained discipline when it comes to your household financials.

This guide will invite you to learn more in these pages about systematic budgeting. It focuses on practical application and zooms in to apply these “best practice suggestions” in your own home. It empowers you to put together a dynamic, financial plan that suits your wallet, means and circumstance.

Financially speaking, assess quickly where you think you and your family are today.

• What kind of a picture do you have?

• Could you come up with something?

• Did you have the data and numbers you needed?

• Would you be able to plan for where you want to be and start living your life today as a fiscally sound and disciplined family with the information you have at your disposal at present?

Money makes the world go round! It is no secret that some of us have more, some have less. We deal with our own personal finances and cash management distinctly differently.

Households have varying needs, means and circumstance. Our money-management skills are also at different levels, as is our debt and savings!

Budgeting has to do with most of these perspectives and reflections.

The purpose and goal of family budgeting is:

• financial situational analysis and informed awareness,

• cutting cost,

• gaining control or curbing spending and

• starting to save, building up wealth and liquid assets over time.

There are many phases and steps to go through when creating a budget.

If you are looking for ways to manage your money better, making it reach and stretch further, and providing you with financial security and a more solid future, then you have come to the right place.

In this brief introduction on family budgets, we have already introduced our first couple of key questions

The purpose of setting up a family budget?

• Why would or do you need a family budget?

• What is the business case for and rationale behind family budgeting?

• What are the benefits and advantages of a family budget?

We elaborate a little more below. For most people, a family budget is the equivalent of a simplistic process: money is earned and comes in; money is spent and moves out!

It is a fluid, easy-flow, one-directional, cash management process. It is driven by daily life, a spending-orientation, or no plan at all!

For most families, income is also fixed and outflow typically increases over time, as the needs of the family fluctuates and changes. Loading up on debt is also very typical for the majority of our families. If this sounds very much like a vicious circle, it is. Most families are caught up in it and constantly battle to get out.

Mostly, we think that we wisely spend our money on necessities like food and clothing, petrol and household or family needs, but can rarely put a finger on where the money actually goes, let alone produce a budget!

A good place to start is to monitor these expenses.

Assess your financial situation. Start with assessing where exactly you are in your financial life and circumstance. Most of us think we know, but we really do not.

That is, until we take the time to actually list, study and analyse the situation. Figure out what your financial worth is, look at all financial goals, and set a timeline for reaching them. Does this sound like an action plan? Where do you start?

A good suggestion is your bank statements, tax return and recent current credit report – a financial asset statement if you will -and an overview of the current situation.

The premise is simple: you cannot get to arrive where you want to be if you do not know where you are today, what it will take to get where you need to be and how to get there.

A well thought out, planned and realistic budget will serve as a roadmap to get you there. It is a financial tool facilitating your financial dreams, goals and aspirations, making them become a reality. Budgeting will enable you to actually reach your financial targets and set goals.