Using A Budget to Fix Finances
Setting a budget for your family is a strategy to fix your finances. I know we all grumble about how there is not enough money coming in to actually budget, especially if you are on a fixed income. I have definitely been there. It is hard when you are living from paycheck to paycheck and then there is the rent/mortgage, utilities, gas, and other household expenses. So I try to list some tips here and hope that this can help you.
The first thing is to get a reality check on where your money is going. We miss so many of the small things such as cigarettes, candy bars, and other small items. However, you should spend a moment to write down all of your expenses you have coming in and what you think you spend out. Of course list the major items first such as your rent, utilities, car payments, etc. If you cannot do this at this time, then I suggest start a spreadsheet or use your checkbook register to track everything that you spend your money on. You can also do this on a plain piece of paper. The key is to just do it.
Once you have a list of all your income coming in and a list of everything you spend your money on (expenses) then you should be able to devise your budget. Elements of a budget should list things such as your rent/mortgage, car payments, medical insurance, car insurance, food, and recreation expenses. Start with your income and then start subtracting your expenses, this will allow you to access rather or not you have disposable income or not. Disposable income is income that is left over after all your expenses have been paid. If you are really optimistic, you can devise a yearly budget instead of a monthly budget by multiplying your amounts x 12.
Now since you know where your money is going you can begin to see those areas in which you need to cutback on your spending on. Perhaps if you are like most people who struggle day to day, then you will probably have to find a part time job or start a small business that does not have huge upfront costs to support your family.
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