Create a Budget

Creating a budget is necessary to provide some insight on the amount you and your family as a household is spending. Creating a budget does not have to be difficult or time consuming. I, personally, like Excel spreadsheets. If you do not like Excel, just use good pen and paper. Create a budget based on your known income, minus expenses. When it comes to expenses, be honest with yourself.

I once asked a client how much she spends on meals? Her answer. $100 per month. But when I ran the actual numbers, it was a total of $600 per month!! Look at your past statements to find out how much you are spending and what you can cut cost down on. Use apps such as Mint.com that will link to your bank account and categorize your expenses to give you totals. This is a great tool to use.

Also, think about not only of your activities but your families as well. Do your children play sports? What is the cost of that, including equipment? Do they take lessons such as swimming or piano? When are those fees due? Are there other activities involved such as team outings?

The biggest expense most families have is eating outside of the home. Don't get me wrong, I love going to a new restaurant every now and then. But spend time cooking from home, especially with a large family. I have a 10-year-old son who is age appropriate for the kids meal, but it does not really make him full. He eats off the regular menu. So, for a family of four, the cost of eating out adds up. Try to plan the family nights when you do eat out. If it's every Friday, then budget for it. The last thing you want to do is have a nice dinner, then stress yourself for not being able to pay your bills the next day.