Any kind of budgeting can be difficult but can be even more difficult if you happen to have a family to support. But, it is one of the most important things that you can do for your family and their security. Without a good budget you could find yourself getting behind on bills and owing too many debts that could actually end up looking at the possibility of bankruptcy and you really don't want to have to face that. In order to make sure that you finances are in order you should come up with a budget that will suit you and your family.
Probably one of the most important things that you will need to include in your family budget is health care. All of the different things that a family needs like checkups, vaccinations and other medical issues can add up quite fast and it can become a burden quite fast. So it's important that you not only set aside money for monthly health insurance payments but also try and set up an account that has money in it that is set aside only for medical issues, because even with insurance, not everything is covered.
A good budget is going to have goals. So, you need to figure out what your financial personal goals are and you will need to recognize these goals and their importance. You need to do your best to separate things that you want to spend your money on, for example vacations and then things that you should be spending your money on like clothing, food, or things that should be fixed around the house.
You can separate your expenses into two categories. Once category should be for fixed expenses and then the other should be a discretionary expense category. The fixed one is for things you know that you will definitely have to be spending money on like your rent or mortgage, car insurance, utilities, etc. The discretionary ones are things that you don't really have to spend money on but things that you spend it on anyway. That would be like going out to eat or travel for example.
If you want to make sure you know how much money you really are spending make sure that you keep track of your bank account and all of your credit cards by checking the statements on a regular basis. Make sure that you analyze these statements at least on a monthly basis. This will help you see where you need to be spending less each month.
Having a good budget means that you will be able to better manage your payments on your outstanding debts. You will always need to make sure that you allow room in your budget for at least the minimum monthly payment on your debts. It's better however if you try and pay more, but never pay less, that's why it's important that your budget always include the minimum payment at all times.
Another good thing to do for your budge is to try and avoid using your credit cards. Using them once and a while is OK, but don't get in the habit of using them on a regular basis. You are going to end up drowning in finance charges if you do this. If you want to buy something special and you don't have the cash for it, then start setting aside money for it. Do this by taking an envelop and labeling it with the item you want to buy and then put extra cash in the envelop on a regular basis until you have the amount of money you need to buy it.
Within your budget you should include allowances for the children in your family that are old enough to do chores. If you start them early enough, it's a good way to teach them the concept of saving, earning and budgeting.