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Establishing a frugal family budget that is practical and easy to maintain is essential to finding financial freedom, especially with an expanding family. Although it can be difficult to stick to a budget, here are five ways to build a family budget that works:
1. Create a Budget
One of the best ways to visually track your spending habits is to create a budget. Begin by writing down your family’s total income and typical expenses. This allows you to see exactly where your money is going each month, and how much more you are spending monthly than you actually need to be spending.
From this point, list out all of your necessary expenses from bills to loan payments to groceries to savings to retirement, etc. Factor in how much they cost per month against how much income you generate monthly. If you are spending more than you are making, or if the budget seems too tight, determine if there are any expenses you can do without like a membership or club membership. And, look into any areas where you could save money such as combining your TV and Internet into one DIRECTV Internet payment, or refinancing your mortgage.
2. Discounts
There are easy ways to save money around the house that are often neglected. Swap out energy-draining products, such as incandescent light bulbs, for eco-friendly products. Using LED lights can save you around 10-15 percent on your next electric bill. Look to set your thermostat to 78 degrees or higher during the summer, and turning them off completely when leaving the house. Dry your clothes on a clothesline instead of using the dryer, and invest in a reverse osmosis water faucet to replace purchasing bottled water.
3. Coupon Shop
When it comes to grocery shopping, try to purchase items that are on sale or have a coupon available, especially if they are not essential items. Usually there are grocery store coupons available online. If you join certain sites, such as Ebates, you can receive gift cards and discount rewards at grocery stores. Avoid high-priced name brand items and look for store brand products. The quality is usually the same, and the price is usually significantly lower.
4. Financial Goals
Because you might be tempted to stray from the budget, set plausible financial goals. These goals, such as meeting a certain dollar amount by a particular month, add an incentive to maintaining the budget. From saving money for retirement to your children’s college funds to saving for a home, protecting your family’s monetary future begins with setting and meeting your financial goals.
Additionally, set fun financial goals and investments, like safe secure best surety bond texas as well. They do not need to be expensive, but if you reach a particular milestone, celebrate by treating the family to a dinner or dessert out, or something equally budget-friendly. Depriving yourself too much too soon can lead to you accidentally blow the budget.
Creating a family budget and sticking to it removes the financial burden many families find themselves in, and brings you financial freedom instead.
