Leave no stone unturned when you create a concise overview of your home’s finances. If you know you part with $20 a week on eating out, factor it in, or maybe you spend $20 on staying in and streaming services. When you are setting your monthly budget, don’t be modest about your spending. We’re all guilty of thinking a little treat here and there won’t make a difference, but these small expenditures quickly add up. Knowing what you can save goes hand in hand with knowing what you can spend. In reality, $300 in savings is certainly still something to be proud of, and you shouldn’t feel guilty about needing to pay your bills. If you aim to save $400 but find your monthly bills constantly eat into that, you’ll start to think you’re continually overspending and incur all the stress that comes along with it. Set budgets and spending plans that are achievable. Of course, we’d all love to save $1,000 a month, but that’s just not realistic for the vast majority of people. Be realistic about your saving expectations Once you deduct your total expenses from your salary, you’ll have a clearer picture of what disposable income you have left.

Savings/emergency fund (money you aim to save each month without fail).Car running costs or public transportation budget.Living expenses (your average grocery and utility bills per month).Insurance premiums due (health insurance, car insurance, life insurance, etc.).Credit card repayments (an approximate figure).Monthly income (your take-home pay and any other source of income).Even better, have this information stored in an online, secure document, so you can access it anywhere and update it as your life circumstances change. If you think having all this assigned to memory is too big an ask, try using Excel to make a budget worksheet. Having a clear understanding of the funds you bring in each month, and money you pay out is essential you can’t manage a budget if you don’t know what your budget actually is. You may think terms like “cash flow” and “expenses” are only used in the office, but being good with money is universal, whether you’re running a business or just making sure your family isn’t overspending.

Introduce some of these budgeting tips into your home, to set a great example for your children and to make your life all the easier. Creating positive spending habits and running a personal budget are life skills everyone should know, including kids. Whether you’re saving up for a sunny vacation or just counting the pennies for a rainy day, personal finance should always be top of mind when it comes to your household.

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