How to plan the family budget

Personal finance is a skill

Whether you're saving for a sunny vacation or just counting pennies for a rainy day, personal finances should always come first when it comes to home. Creating positive spending habits and managing a personal budget are life skills that everyone should know, including children. Introduce some of these budget tips into your home to set a great example for your kids and make your life easier.

Know your cash flow

You may think that the terms "cash flow" and "expenses" are only used in the office, but being good with money is a universal concept, whether you're running a business or just making sure your family doesn't overspend. excess. It is essential to clearly understand the funds you contribute each month and the money you spend; you can't manage a budget if you don't really know what it is.

If you think having all of this committed to memory is too much to ask, try using Excel to create a budget sheet. Better yet, store this information in a secure online document, so you can access it anywhere and update it as your life circumstances change. Here are some suggestions of what you can include in the list:

• Monthly income (your net salary and any other sources of income)

• CrMonthly income (your net salary and any other sources of income)
• edit card refunds (a ballpark figure)

• Insurance premiums due (medical insurance, car insurance, life insurance, etc.)
• The mortgage or rent payment

• Student loans (if any)
• cell phone plans
• Living expenses (your average grocery and utility bills per month)
• Car running costs or public transportation budget
• Membership in nurseries/gyms, etc.
• Savings/emergency fund (money that is intended to be saved every month without fail)
• Once you deduct all of your expenses from your paycheck, you'll have a clearer idea of ​​how much disposable income you have left.

Be realistic about your savings expectations

Sure, we'd all love to save $1,000 a month, but that's not something the vast majority of people can do. Set budgets and spending plans that are achievable. If you want to save $400, but your monthly bills are constantly eating it up, you will begin to think that you are continually overspending and you will suffer all the stress that comes with it. Actually, $300 in savings is something to be proud of, and you shouldn't feel guilty about having to pay the bills.

Control your expenses carefully

Knowing what you can save goes hand in hand with knowing what you can spend. We're all guilty of thinking that a little indulgence won't make a difference, but these little expenses add up quickly. When setting your monthly budget, don't be modest with your spending. If you know you spend $20 a week eating out, you factor that in, or maybe you spend $20 on streaming services and food expenses at home. Leave no stone unturned when creating a concise overview of your household finances.

See if your bank can help

Many online banking platforms allow you to set savings goals and will send you a warning email if you're in danger of over drafting. Check with your bank to see if you can create a set goal or limit your spending so you have more than one set of eyes on the money coming out of your account each week. Even if your bank doesn't allow it, there are plenty of other spending apps out there, and once you get into the habit of tracking your spending, you'll have a much clearer view of exactly what's being separated from month to month.

Don't lose your documents

When it's time to pay taxes, it's common to wish you'd been a little more organized with your documents over the course of the year. With a document scanner , you can simply take a photo and digitally convert all your documents effortlessly. Store them securely in a Dropbox folder or share them with a password-protected link and you'll be on top of things in no time.

What should my monthly budget be?

Your monthly budget should always take into account your essential expenses. So, if you earn $1,500 a month, and your expenses add up to $1,100, that means you'll have $400 left to feasibly spend without going into debt. If you want to put $200 in savings, then you will only have $200. Of course, the smaller your budget, the harder it can be to stick with it. However, generally speaking, it is better to overestimate expenses than to underestimate them; after all, managing debt is much more difficult than sticking to a budget.

There are different budgeting techniques you can try to ensure you have healthy money habits, such as the following:

The 50/30/20 rule

Created by Elizabeth Warren, the 50/30/20 budget program breaks down your finances into “needs” (rent, bills, etc.), “wants” (gifts, shopping malls, etc.), and “savings.” That means all of your "needs" should be 50% of your total income, which may mean cutting back on groceries or finding a cheaper service offering. Your “wants” must be 30% of your income and your “savings” must be 20%. Having a goal set like this can give structure and peace of mind to your money management issues. It can also be quite flexible, as by having 30% of your budget allocated to non-essential expenses, you can easily add another 10% to your savings allocation.

The envelope method

This is a great option for people who like to be more practical with their money, as it is a cash-based savings system. While that may be a bonus for anyone who hasn't embraced the penniless way of spending, it means you won't enjoy the security of a debit or credit card. That said, studies show that you're less likely to overspend if you pay in cash.

This method has you set your budget in envelopes, one for groceries, one for hobbies, and so on. You carry the assigned envelope every time you go to the shops, the movies or to eat, and when the money runs out, no more is spent in that area until payday. This gives a very clear understanding of how much you have left, as it is right there in your hand.

How can I save in my family budget?

There are several ways to reduce daily expenses, including the following:

• Opt for cheaper brands at the supermarket
• Find a cheaper energy offer
• Assess what “luxuries” you can do without

Speaking of luxuries, how many do you have? The Internet, for example, is a vital part of any home, but are you paying for data allowances that you don't really need? The speeds needed by a household that includes a freelancer and an avid gamer are higher than those needed by a young family, for example. Do your research and make sure you get the best value for money.

be smart with money

Knowledge really is power when it comes to the family budget. Have a clear and precise vision of what you earn and what you spend, and don't discount useful digital tools: if they can work for your office, they can work for your home. Dropbox lets you keep receipts, financial documents, and budgets in one easy-to-access place. And with the Dropbox Family plan, you can get extra tools to share and secure your quote files more easily. This means that even if you opt for a cash-based savings system like the envelope method, you can still have a digital record of your spending and a clear understanding of where your money is going. Saving budget worksheets and financial documents with Dropbox will allow you to view them across multiple devices, conveniently share them with roommates and family, and most importantly, stay focused on your goal.