Dollars & Sense : 10 Tips to Create a Household Budget (that’s do-able!)

For some, the dreaded “B” word, or “Budget” is akin to taking a trip to the dentist. We know we should go, but we really like to procrastinate in making appointments because it can be unpleasant!

Most people know a budget is a good idea, but don’t really like making one and have trouble sticking to them. I am not sure if we feel we are restricted or lack freedom with a budget, but many people even call them alternative names like “spending plan” to keep from saying “I am on a budget” to themselves or others.

I myself have never liked budgets either, and until recently never really put one together that I followed for very long. In fact, I still have problems with sticking to it and checking it as often as I should, but I am getting better.  For more information see our post on WHY creating a Household Budget is important.

10 Tips for Creating a Household Budget

MAKE GOALS
Goals can be as short-term as buying a new pair of shoes next week, or as long-term as going on vacation next spring.

INVOLVE YOUR ENTIRE HOUSEHOLD
If it’s just you, great. But if you have a spouse and/or children, create a budget together, and explain to everyone that they may be asked to make sacrifices.

BUDGET IN FUN
A budget that leaves no money for an occasional dinner out or for a family outing at an amusement park is designed to fail. Your budget should help you, not put you in a bind.

MAKE THE EFFORT TO SAVE
Most people look at saving as putting away money for a rainy day. But a better way to look at it is putting away money for a nice vacation.

TAKE INVENTORY
If you don’t know where your money goes, how do you expect to manage it?

DISTINGUISH BETWEEN WANTS AND NEEDS
Buy what you need first. The wants belong in the “what’s left over” category.

EXPECT CHANGES Look down the road, and get into the habit of thinking ahead.

GET RID OF HIGH-INTEREST DEBT Focus on identifying high interest-rate debt and work on paying that debt off.

FIND A SYSTEM THAT WORKS FOR YOU It could be the envelope system, a bank or a credit union. If it works for you, use it.

STICK TO IT Creating and sticking to a budget that works won’t be easy, but in the end it will help you make the most of your hard earned money.

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Have budgeting tips of your own?  We want to hear from you! Please feel free to comment or give feedback in the box below!

Author Bio:  J.J. Morgan is a freelance writer , and Editor of Smexy Mom. She also Owns Parchment, a custom stationery boutique and online store catering to celebrity clientele since 1968.