Steps to Setting up a Household Budget

Budgeting is an essential part of running a successful household. Many times we don't realize that our house is a business. Would you spend a company's funds without allocating them? Don't do that in your household either! Here are some tips to help you get your household finances on track. I will put links to free tools that you can use at the bottom!

Step #1: Track your spending!
One of the first things that you need to do is track the money that you are spending. You need to find out where your money is going so that you know how much you need to allocate to each category. You can either do this through a spreadsheet or use a website or app to help you. One popular website is Mint. Mint allows you to enter all of your financial data, budget it, and track spending habits. This is a very useful tool for anyone.

Step #2: Gather Data!
Setting up a budget requires a bit of discipline. A budget is not set in place to limit your spending, but to allow you to have all the things you desire. Tools you need to set up your budget are a spreadsheet, a mobile app, a website, or a piece of paper, to log your budget. You will also need your income information and monthly expenses. Once you have all of your information, you are ready to begin.

Step #3: Log all data!
Now that you have gathered all of your data, you are ready to begin your budget. List all of the expenses that are standard from month to month (Mortgage, utilities, food etc.). Allocate a certain amount of funds for each section. Start with necessities and work your way down to extras.

Step #4: Implement!
Now that you have your budget down on paper (or computer), it is time to implement it. In order for budgeting to be successful, you have to follow it!

Step #5: Watch it work!
You are now following your budget and guess what? You may find that you actually have extra money. Now you are not living pay check to pay check and you always have money in your bank account! You are even building a savings! Way to go!





Free Budgeting Tools
Spreadsheets






Websites
Mint
Pocket Smith
Pear Budget
Budget Pulse
Money Manager

Apps
Mint
Pageonce
EEBA
Cashculator (Mac)

Please comment if these tools help you or you have other ideas to add!