Starting a new family makes for one of the most exciting times of your life. Getting married or having a baby can turn out to be an immensely rewarding experience. Emotionally – there is a lot to look forward to. However, one cannot really forget that it (i.e. starting a new family) is an expensive proposition as well. One cannot really expect to start a new family without revising one’s finance management strategies. Preparing a proper family budget will actually help you ensure that your family has everything that it needs as well as what it wants. Today, we will be offering you a few tips with the help of which you can start budgeting for your family.
How should you budget when you are starting a new family?
One of your major tasks would be to find out what your immediate financial responsibilities or goals are. Are you looking forward to bring your expenses under control? Or, are you trying to pay off all your debts first? Or, do you want to just manage your money better by exploring new investment opportunities? The budget you prepare will be dependent on the financial goals you have. Every individual has different fiscal responsibilities. While some are dealing with a large number of debts, there are others who might be debt-free but are trying to bring their spending tendencies under control. Therefore, the way they prepare their budget would be different as well.
Stop basing your budget on individual earning, expenditures and saving!
Sit down with your partner while working on your budget. Club both your earnings and financial responsibilities. What is the total amount of monthly earning? How much do you spend separately? What are common expenses (like rent, groceries, etc)? Does anyone of you have a major debt to deal with? Consider all these aspects of your joint financial responsibilities. Jot down your earning, expenditures and present savings. Study individual spending tendencies and then seek opportunities of savings.
Does starting a “new” family mean welcoming a baby?
Now is the right time to divvy up your discretionary pounds!
With a new family, it is always better to plan your discretionary spending on a monthly basis than on a yearly one. You might as well want to increase your spending for a day camp in summer – or for that matter, you might as well have to spend more on clothes than your groceries because you have a series of “family” functions or get-togethers lined up in a particular month.