6 tips for managing your household budget

We know that managing household resources can be very complicated, especially when you have to do a lot with little money. In these cases, a budget is a great tool. Don’t be afraid! Here are 6 tips to create one: 1. Set goals First, identify your needs and wants; make a list of what you need to pay and what you want to achieve with your money. For example: Needs Pay for electricity Pay off credit card debt Pay for car insurance Wants Save for Christmas vacation Buy a new television Refresh wardrobe 2. Identify income and expenses After defining your goals, analyze how much money comes into your house, how much goes out, and where it goes. Add up all family income and record every expense, including gas, groceries, rent, clothing, credit card payments, etc. Then calculate income minus expenses; this will help you realize if more money is going out than coming in. In this step, try to be very precise so that the results truly reflect what is happening with your household finances. Tips for going to the supermarket: http://www.kiwilimon.com/tips/tips-de-familia/tips-para-ir-al-super 3. Look for leaks While doing the previous step, you will realize that many of your expenses go to things you really don't need or can avoid. If you’re unsure whether you really need something, go without it for a period of time; if after that time you don’t miss it, that’s your answer! For transportation, for example, swap taxis for buses or avoid using your car for short trips. How to pay off your debts faster: http://www.kiwilimon.com/tips/tips-de-familia/como-pagar-tus-deudas-mas-rapido 4. Set your budget Once you have all the information, set an amount for each aspect. This doesn’t mean you will limit yourself, but rather that you will have a spending plan for a specific period. In the long run, this will help you avoid debts and stress, as you will be able to make better decisions based on your actual income and expenses. The ideal is also to allocate a portion of your money to savings. How to manage the cost of having a family: http://www.kiwilimon.com/tips/tips-de-familia/como-manejar-el-costo-de-tener-una-familia 5. Follow your plan When you have your complete plan, put it into action! Keep track of your expenses to ensure that by the end of the month or pay period (as applicable), you have adhered to what is established in your budget. In the end… 6. Review the results Check if your plan is working as expected. Review if any unexpected extra expenses have arisen or if money is again going to things you don’t need. Follow these tips and you will see that your household finances will improve.