Finance

How I budget for a family of 5

Living on one income today is not easy, nor the norm, but it’s possible.

Creating a budget is essential to our living. We aren’t rich, but we do have necessities and wants. Having a goal is great but if there’s no plan to get there it rarely gets met. My advice to any and everyone, especially to those who may feel like every pay check matters is to create a budget for every dollar and know where your money is going. A budget has two main parts:

INCOME

and 

EXPENSES

 

Steps to creating a budget:

  1. Take the dollar amount that comes in for a particular week and write it down. (pay amount)
  2. Make a list of all expenses.
  3. Order expenses in terms of due date. Ex: mortgage paid on 1st, cell paid on the 15th etc…
  4. Consider what check can handle each expense
  5. Assign expenses to a particular pay check
  6. Include in budget, an amount for extra (no defined place, amount left over for just in case)

There are certain bills that you may have that are extremely important like mortgage, electricity, water, insurances. If you find that when they are due, the corresponding check can’t cover it, or the check might come in a day or two after it’s due, my advice is to cover time-sensitive or very important budget items a check in advance.

Every time money leaves the house it should be accounted for, and intentional. Living requires spending at some point, one way or another. No matter how big or little your income, knowing where your money is going and planning in advance can prevent late payments, and set you and your family up for success!

 

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