How to Build a Better Budget for Your Family’s Needs

The daily responsibilities of family life can make it difficult to prioritize building a budget. Between work, errands, caring for kids and trying to find a moment for yourself, sometimes managing your money is the last thing on your mind. 

However, building a budget is an important way to make sure your family’s finances are on track. You can use a budget to help you understand your spending, clarify your needs as a family, create realistic financial goals and set aside extra funds for a rainy day. 

Setting a budget can also help you find ways to reduce your expenses or deal with debt, such as taking out a debt consolidation loan. If you have a lot of high-interest debt or you’re having a hard time keeping track of different debt bills each month, a debt consolidation loan rolls multiple debts into one loan balance with a single monthly payment, potentially with a lower interest rate than what you’re currently paying. A debt consolidation loan could help you lower and streamline your debt payments.

Keep reading for more tips on how to create a better budget to support your family’s needs.

Track your money 

The first step in building a better budget is to figure out where your money is going. You can track the money coming in and going out by writing it down, using a spreadsheet, finding a template online or trying an app. You could start by tracking your monthly spending since most bills are paid once per month. Breaking the information down by week might also be helpful if you want to see your spending in more detail. 

The goal is to figure out how much money you have coming in and how much you’re spending on your rent or mortgage, groceries, utilities, childcare, dining out and other expenses, such as debt payments. Write down your income, the amount in your checking and savings accounts, debts, loans, taxes and any other outstanding bills. 

Once you have all of this information in one place, you’ll be better able to spot patterns and more clearly see where you might be able to cut back or spend or save more. 

Get clear on your needs 

Now that you have a better understanding of how you’re spending your money, you’ll want to think through your family’s main needs. Consider the following questions:

• How is your money serving your needs now? 

• Is there anywhere you’re falling short? 

• How would you like to spend your money going forward? 

• What are your non-negotiables? 

• Where can you cut back?

• What tools and strategies could help?

If your kids are old enough, this could be a good opportunity to get the whole family involved in your finances. Modeling positive habits is a great way to inspire your kids. Encourage them to learn about money, including spending and saving, so they’ll feel more confident about their own finances in the future.  

Set realistic goals 

Once you have a clear picture of your finances and your family’s needs, you might want to set some goals for your family budget. Be realistic — what do you need to spend each month, and where can you save more? What are your short and long-term goals?

In the short term, you may want to focus on establishing an emergency fund or paying down your credit cards. 

In the longer term, saving more money might be your top priority. Using the 50/30/20 method is one way to organize your money into essential items (50%), wants (30%), and savings (20%), which can be a helpful way to ensure you’re saving each month.  

Stay flexible 

Creating a better budget doesn’t mean you’re locked in to your spending and savings goals. You can always make changes as your family’s needs evolve. Instead, think of a budget as a road map to help you organize your money, prioritize what’s most important to you and work toward your goals. 

Create a budget that benefits your family

Building a better budget doesn’t have to be overwhelming or time-consuming. Instead, think of it as a way to take the pulse of your finances. That way you’ll be armed with the right information to take care of your family’s needs and make changes that could support you now and in the future. 

Notice: Information provided in this article is for information purposes only and does not necessarily reflect the views of growthnavigate.com or its employees. Please be sure to consult your financial advisor about your financial circumstances and options. This site may receive compensation from advertisers for links to third-party websites.