(MP) If you’re anything like I was — prioritizing a household budget is a task you’re very resistant to. But the fact of the matter is if you’re Knee deep in debt you have to. At the time I couldn’t tell heads or tails where my money was going monthly. The problem was I never prioritized a household budget. I would pay a bill as it came in – and sometimes not and this coming from a kid whom was financially educated. I had to clear my head and start organizing my finances to get my house in order. What I found out was the best way to start making a budget is to consider what you (and your family) spend your money on daily and monthly.
I got honest with myself. I stopped pretending that everything was okay when in-fact it wasn’t. I started keeping track of my money and stopped spending excess on unnecessary waste. And that’s exactly how I live the financial life that I want to live today. I’m reaping rewards through good credit and having an abundance of funds all through household budgeting.
People who fail to manage a household budget often find themselves in debt. If you’re living paycheck to paycheck right now, writing a budget may be a little bit uncomfortable to do, but absolutely necessary. If you’re not aware of your expenses, there is no way you can adequately prepare for them.
Many financial households run on 110% of their income. You just can’t do that -not for long anyway. I urge you to chart your household expenses to your monthly income and get busy prioritizing a household budget.
Common Household Budget Expenses
Monthly Income –
credit card minimum repayment
transport costs (train, bus tickets etc)
ongoing medical costs (medication etc)
pet costs (vet appointments etc)
Check your budget at the end of the first month and each one afterwards. Did your spending habits change? Are you still on track? Ask yourself these questions and see if the budget is really helping you. Get free household budget worksheets.