Mums are always looking for ways to save money. Whether it’s finding the best deal on the food shop or looking for sales when purchasing clothes for the children, there is always room to save money. One area that is often overlooked when it comes to saving money is creating and sticking to a budget. Follow these simple steps and you’ll be on your way to creating a budget that works for you and your family.
Step 1: Determine Your Income
The first step in setting a budget is determining how much income you bring in each month after taxes. This will be the starting point for all of your future budgeting. You can use an online calculator to help you determine your post-tax monthly income.
Step 2: List Your Expenses
Now that you know how much money you have coming in each month, it’s time to start listing out all of your expenses. Be sure to include both fixed expenses (e.g., mortgage/rent, car payment) and variable expenses (e.g. food shopping, fuel). If you’re not sure where to start, check out Mint’s expense tracker which can help you get an idea of where your money goes each month.
Step 3: Set Priorities
Once you have all of your expenses listed out, it’s time to start setting priorities. What expenses are absolutely essential and which ones can you cut back on? For example, if you’re trying to save money, you may want to consider cutting back on dining out or adjusting your subscriptions to companies such as Netflix or Amazon Prime.
Step 4: Find Ways To Save
Now that you know where your money is going each month, it’s time to start looking for ways to save money. One easy way to do this is by setting up a budget and tracking your spending using an app like Mint or You Need A Budget (YNAB). By tracking your spending, you can quickly identify areas where you are overspending and make adjustments accordingly. You can also look into automating your savings so that a certain amount of money is transferred into savings each month automatically.
Creating and sticking to a budget doesn’t have to be difficult or painful. By following these simple steps, you can develop a budget that works for you and helps you achieve your financial goals. And don’t forget – if at first you don’t succeed, try again! It may take some trial and error before you find what works best for you and your family. But once you do, sticking to your budget will become second nature.
