10 Simple Steps to Create a Family Budget

Are you ready to stop living paycheck to paycheck? Guess what?! You have the power in YOU to do it. You get to decide where your money goes! I like doing my budget on a spreadsheet online, so I have access to it on my phone and my computer. Here are my top ten tips:

1. Figure out your monthly income (go off of your net income).
   • If you have an hourly 8-5 or salary job, this should be pretty consistent from month to month, but if you have a commission based job or a job that varies from month to month, I suggest you look at the previous few months or last years month comparison and average that salary, or if you can, use the lowest paying month as your base income. Any extra money, you can save or put toward debt!
2. Write down debts.
   • This includes mortgage or rent, car payment, credit card debt, past due medical bills, student loans, personal loans, etc.
3. Write down fixed expenses.
   • Fixed expenses are the ones that are the same every month. Some fixed expenses may include: car insurance, phone payment, HOA fees, property tax, health insurance, life insurance, homeowners’ insurance, subscriptions (anything on a recurring payment), cable, internet, daycare, gym memberships, and utilities (Add electric, gas, water, sewer, garbage, etc. only if you’re on a level pay program where it is the same every month. If it’s not the same every month, we’ll add it in in the next step.)
4. Write down variable expenses.
   • Variable expenses are the ones that change from month to month. Some of these categories include utilities (electric, gas, water if it varies from month to month), fuel, groceries, drinks (including your morning coffee or soda), eating at fast food/restaurants, toiletries, pet care, clothing, recreation, beauty, and personal spending.
   • I suggest looking back on the past 2-3 months of spending and average those out to create a budget for each category.
5. Make sure debt and expenses are less than your income.
   • If they aren’t, start with the variable expenses first. Is there something that you can lower in the budget for the month? Can you eat more at home to save some money?
6. Put the extra money into savings or towards debt.
   • If you can, PLEASE, for your future self, save some of your income every month. Now I know not every month sometimes isn’t possible, but I believe in you! You can do it! Some savings is so helpful when you have something unexpected come up. If you don’t already have an emergency savings, start one NOW! Even if you can only save a little bit each month, work towards building up a savings that you ONLY touch for emergencies.
   • If you already have an emergency savings, pay the extra money towards your debt (Check with your loan to make sure there are no penalties for paying off the loan early). Again, your future self will totally thank you!
   • Think about the next few months coming up: do you have any birthdays, holidays, repairs, vacations, medical expenses, or anything else that you’ll need to save money for? Plan out how much you’ll need for those, and start saving!
7. Decide how you’re going to stick to your budget- especially with the variable items.
   • It’s no secret that the variable items are what can prevent us from building up savings or not. Groceries, fuel, personal money. How do you keep from getting carried away?
     • Some choose to use cash for the month. You can pull the budgeted amount out for your variable categories and put them in envelopes for different categories. Once you’re out of money, there’s no more spending for the month.
     • For others, cash doesn’t work as well, so they decide to use their debit or credit card. (If you use a credit card, I recommend only using it if you can pay off your card at the end of every week, but if you know you’re not going to do that, it’s safer to use a credit card). If you do the card method, you will need to check in regularly with your bank account anyway to make sure you aren’t over spending. 
8. Balance your budget.
   • Every week, check your bank account. Check in with yourself as to how you’re doing. If you’ve over spent in certain categories, figure out where you can move money around in your budget so that you don’t go in the negative for the month.
9. At the end of the month, review how you did on your budget.
   • If you budgeted too much or too little in a category, adjust it for the next month.
   • How did you do with your savings goal? If you didn’t save as much as you’d like, see if there’s anything you can cut or reduce from your budget. Could you make yourself a drink at home instead of going out? 
   • Your budget should be based on expenses, but also your values. Does going out to eat add value to your life? If it’s important to you, then make room for it in your budget. If it doesn’t add value to your life or isn’t aligned with your goals (both short term and long term), make adjustments.
10. Don’t get discouraged.
    • I’m pretty sure most people with a budget don’t have perfect months. So if it wasn’t perfect, you’re not alone! Something comes up or whatever, but the biggest thing is that you keep trying. The fact that you’re trying says a lot about you! You’re amazing, and budgeting really can change your life. It’s so nice to be able to have freedom (instead of shame) for spending money how YOU decide to.

I know budgeting takes some time, but the more you do it, the easier it becomes. And trust me, your future self will thank you so much for doing it and sticking with it. You can do it, and I’m here to cheer you on! You got this girl!

Now I want to know, what’s the one thing you can’t live without that you’ll be adding into your budget this month? Comment below! Can’t wait to read your answers!

Xoxo,

LaChelle

P.S. Here’s my example of a budget spreadsheet. https://docs.google.com/spreadsheets/d/e/2PACX-1vRalMDIVRCXMSPX8hBskrx1L2_wV4S3Y-Jgyn8-qXD8ql16Xehs9i5V0oJvDUGphYbjtH0aixnC__12/pubhtml?gid=0&single=true 

If you want my free budgeting template, message me @lovinlikeamom on Instagram! 

LaChelle is from Idaho. She’s a stay-at-home-mom of two boys, ages 2 and 3. She has taught fitness classes for 9 years and graduated with a degree in Exercise and Wellness from Brigham Young University. Her and her husband have been married for 4 years. Whenever she can, she loves traveling, being thrifty, camping, and going on any kind of adventure (from going on a last-minute road trip to going grocery shopping)! You can find her @lovinlikeamom on Instagram.