How to Set a Family Budget

Setting a family budget is a very important thing to do. This will help you always keep your bills caught up and straightened out. A family budget can also help you figure out how much extra money you will have each month for spending any way you want.

How to Set a Family Budget

Step 1. Determine your average monthly income by getting three months of check stubs. For example if you make $800 a month, then for three months that would be $2,400.

Step 2. Get three months of bills together and add them up. Divide that by three to calculate your monthly expenses such as utilities, mortgage, car payment, insurance and student loan payments. Say your bills add up to $600 a month, for three months that would be $1,800.

Step 3. Add together three months of other expenses like groceries, clothing and medical bills. Divide that by three and add the result to your monthly expense total. Let's say your other expenses are $200 a month, for three months would be $600.

Step 4. Evaluate your expenses, look for opportunities to economize and develop a plan to cut back spending in different areas. You could cut down on the clothing you buy.

Step 5. Develop a monthly budget and try to stick to it.

Step 6. Set up a savings plan and begin making regular deposits.

Step 7. Track your income and expenses monthly to evaluate how your plan is working, then fine-tune the to produce your desired results.