How To Create a Budget

How To Create A Budget

How To Create A Budget – With These Budgeting Tools…made easier

We are here to help you improve your money mindset.  You probably already have one…so we are here to possibly enlighten you on some additional thoughts about budgeting.

This post is going to help you with some steps on how to create a budget with budgeting tools so that your can hurry up and get to it!

Just For The Record

For singles, creating a budget is relatively easy. There is no one to account for except themselves.  They also tend to have a good handle on how much money they have coming in.  When tracking expenses, they only have their own to think about.

However, with a family budget is can be a little more detailed and of course, more individuals to account for. It has to be a game plan with everyone working together.

Evaluating Family Income

Most families have multiple sources of income. In addition, when there are multiple spenders, that makes things much more confusing. This is one of the main reasons that families often do not make a formal budget. However, having a budget and sticking to it can greatly improve a family’s financial outlook.

What If I Do Not Have A Budget Tool To Make It Easier?

No excuses, please. If you have never worked from home or needed to have Microsoft Office you can still find templates online to help with the process.

There are occasions when I use Google Docs, even with Microsoft Office.

Making a template in Google Docs is free, and in the “sheets” section you can make a budget for yourself there to suit your desired style.

However, here is an example – made just for you: 

  Personal Budget

You are now all set with a good example of a personal budget. There are others as stated in various places on the web, so do not limit yourself.

More tools are listed below.

Creating A Family Budget – It is easier than you think…

1.Take inventory of all income. If a certain source of income fluctuates from month to month, use the lowest amount or average it out.

2. Keep track of all expenses.  It is a good idea to always keep in mind what you are spending versus what is coming in. Keeping all of your receipts and asking all family members to turn theirs in to you each day will be to your advantage, over an oral confirmation.

3. Adding up your monthly expenses is necessary. Be sure to include bills, debt payments, groceries, utilities, cable, internet, phone bills, and everyday expenses such as lunch money and transportation costs. **The personal budget we are sharing gives you great ideas that should be included if applicable to your finances.

4. Getting the family together and making sure everyone has a clear understanding of what you are trying to accomplish.  Each may have a suggestion on ways you can trim the budget.

5. Getting input from other family members will help you determine which expenses are necessary and which ones could be cut down or eliminated. Maybe you or your spouse could start taking lunch to work instead of eating out, or maybe the kids can drop an extracurricular activity.

6. In addition to individual expenses, discuss how you can cut down on the electric bill, groceries, and other necessary family expenses. Consider such things as carpooling or taking public transportation, buying more generic foods, and adjusting the thermostat.

7. Estimate how much you can save on regular expenses, and cut the completely unnecessary items out of the budget. Then refigure it and see where you stand.

8. If you end up with a surplus, allocate a portion of it to savings. If you’re in the red, go back and rework the budget until you have more income than expenses.

Helpful Hints of Where You Can Save Your Money More Aggressively…while creating your budget…Budgeting to Setting Your Financial Goals

Eating Out:  It is easy to run by the nearest restaurant on the way home when you are tired, didn’t sleep well the night before, or just do not want to cook.

Learn how to eliminate this issue by taking the roast out of the freezer the night before so that you can put it into the Instant Pot, or another slow cooker. You can even add the potatoes in with carrots or bake potatoes in the microwave. WOW… it tastes wonderful. It certainly doesn’t take long to put some veggies together if you have the meat ready.

If you buy groceries and then eat out too frequently, you are spending more money in the long run. Of course, you know that.

Cut The Cable:  Okay, I know that everyone must have entertainment. However, Roku has just about any channel you need without the heavy monthly fee.

Roku Streaming Stick+ | HD/4K/HDR Streaming Device with Long-range Wireless and Voice Remote with TV Controls

*there are several of these players with extra features and you will probably spend less than your monthly cable bill on some of these features.

Movies, many choices of vendors, news, sports, and yes for some of it you may pay additional fees. Family, children’s channels, and movies as well.

However, those fees are very economical versus a monthly cable bill. You must have internet service as well, but many people have it all and the total bill is extremely high. Netflix is about $15 a month and there is much to see on it. All without cable.

Cutting Utilities:

Making a habit of turning off the lights when leaving a room may seem simple but it is often a forgotten task. It is helpful in saving electricity.

If everyone is gone from home during the day, turning the air up to 72 degrees +- or so will help. You can also close the doors to rooms that are not used frequently and do not necessarily need to be cooled.

Running the dryer longer than necessary to dry the clothes is also not necessary. You can always turn it back on if the clothes are not dry.


There has to be some time for relaxing and entertaining. *Entertainment example, maybe you’ve been going to dinner and a movie as a family twice a month. But eating in and renting a new release would be much cheaper, and you would still get to spend quality time together.

Individual Expenses:   These expenses can also be tricky. This can be resolved by allocating a certain amount for each family member to spend each week. If someone spends his entire amount before the week is up, reevaluate his expenses and adjust if necessary.

Insurance Necessities

Know what your insurance necessities really are. Often when you may have used the same Insurance Agent for years, you put your trust in his decisions. You are busy and need all the help you can get, however, it is important to pay attention to the small print.

Car Insurance: How many miles do you travel each week? Make sure you read your policy to see exactly what you are being charged and why. Some people forget to thoroughly read all the contents of a policy. If your car is new, of course, your insurance will be more.

However, if one or two cars are older, the insurance should be less and the features of the policy should take that into consideration.  Mileage, age, towing, and other factors.

House Insurance:  It is important to know what must be covered in your home insurance, even if you have a mortgage on it.  If you do not live in a flood zone, you do not necessarily need flood insurance. There could be other selected items you may need to check to make sure they are applicable to your property.

What is covered and not covered in a General Homeowner’s Policy?

You must have sufficient coverage for the mortgage on your home, such as replacement cost, but do not overpay for what you might not need.  It is important to make sure you are covered in the most proficient ways and know what is not covered in a regular homeowners policy. You might need to up your homeowner’s policy.

You may be thinking that the above issues are known to everyone, and they should be.   However, many people think this discipline for budgeting is off the wall and not necessary.

Any budgeting effort takes some work and is necessary to remain within a certain $$$ amount to be successful. You simply must use what works best and is easiest for you.

Being Realistic Is Key

People often make financial mistakes and forget what is most important.  They either go all out or not enough.

However, one reason that family budgets often fail also is that they’re just not realistic. It’s great to cut down on expenses, but sometimes we tend to go too far. For example, cutting entertainment out of the budget completely might look good on paper, but we all need a little diversion every now and then.

Instead of cutting such things out of the budget completely, consider finding ways to lower the cost. *As in the example above under entertainment.

Creating a family budget with budgeting tools can help keep spending under control. This helps for leaving more money to pay down debts and save for future goals.

However, in order to succeed, close monitoring is essential. Your efforts will be rewarded, but, with less financial stress and more money in the long run.

Budgeting Tools Available Online

You Need a Budget

Intuit Mint

Check out these topics- A Budget Guide to Control Your Finances

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