monthly-household-budget-14 by MaggieMills1

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									Even when both partners in a family work, money can still be tight. It
costs a lot to afford all the essentials in life including a place to
live, food and car expenses. Add to that a bit of spending money and some
unexpected purchases and there can be little to no money left at the end
of the month. Setting up a monthly household budget is a great idea
regardless if there’s a little or a lot of money to work with.

Salaries are really the foundation of any financial plan. If the person
works at a job where they are paid a certain amount week after week it
can be a bit easier to plan a monthly household budget. People who are
paid on a commission basis may find it a bit more challenging to work out
a financial plan, but it certainly can be done and the salary portion
should be an average in this case, as opposed to an exact amount.

If you’ve never created one of these before it can be a bit daunting. The
easiest approach is to list all the money coming into the home and all
the money going out. To do this effectively a person should really
document all the expenses they make in a one month time frame. This
includes every stop at the convenience store they make, as well as every
penny they spend in vending machines.

It can be difficult to itemize every dollar but it’s really important.
Doing this helps the person preparing the monthly household budget by
showing them where excess money is going. It’s very surprising how
quickly trips to the mall or sporting events add up.

Working the old-fashioned way with a pencil, a calculator and a piece of
paper can be time consuming and obviously can lead to some mistakes being
made. For anyone with a home or office computer, using monthly household
budget software is really the best approach. All that is required is that
you key in all the relevant numbers and the program will offer
suggestions regarding where money can be saved or where it can be
redirected.

Debt can be overwhelming and for someone who is juggling balances from
one credit card to another it creates a lot of stress. Preparing a
monthly household budget in which the focus is on paying down the debt as
quickly as possible is really beneficial. A good way to do this is to
think about where money can be saved and then using that to pay a credit
card. This might include not buying new clothes, waiting to rent a DVD
instead of seeing a movie in a theater or giving up going out to eat for
a few months. Once a person sees just how much money they are using on
non-essentials when they make their budget, it becomes much easier to
save.

								
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