If you feel like you could be doing more to budget your family’s financial plan, you’re not alone. Many parents face tough choices when allocating resources between the demands of children, mortgages and other expenses. By making a realistic financial plan and sticking to it, you can achieve financial peace of mind and gain freedom to focus on the things that matter most.

I suggest creating a realistic budget as a foundation for managing your family’s financial success.

 

Step One
Record the net employment income for yourself and your spouse.

Step Two
Review previous bank and credit card statements to determine where you are spending your money.

Categorize all expenditures listed on your statements into groups. For example, your mortgage payment could be categorized as “housing,” while groceries and restaurants could be “food.” Customize your categories to whatever makes the most sense for your family. If you find that your family frequently eats at restaurants, make separate categories for “groceries” and “dining” so you will be able to compare your expenditures and evaluate your progress going forward.

Step Three
After listing your income and expenses, tally up the categories and subtract your total expenses from your total income. The sum of this equation shows how much your family is able to save and invest, which will determine if your family’s budget plan is on track.