How To Budget For A Family-8 Great Tips

Learning to budget your money for a family can be tricky but using the right tips should allow you to be much more prepared. However large your family is, using the proper tips is necessary to be as prepared as possible to manage your financial situation. Key tips can be tough to track down but I have listed the best ones here.

The 8 best tips to use include:

Build Budget

Track Expenses for A Month

Focus on Cutting Down on Extra Expenses

Reduce Taxes

Connect with Knowledgeable Resources

Buy In Bulk

Create A Safety Net

Decrease Your Food Expense

Utilize these tips in order to create a better and healthier budget. One big advantage for budgeting for a family instead of for a single person is that you will likely have the potential to save more money.

Through this post I will show you about great tips and valuable information for how to budget for a family.

Build Budget

Building a budget is a critical first step for setting yourself up for financial success. Calculating your gross income, post taxes income, your expenses and eventually your net income will be important for telling you where you are financially.

Gross income is calculated by taking all of your income for a year. After gross income is accounted for, you then go on to calculate the post taxes income. Post taxes income can be quickly determined by visiting this tax calculator.

Post Taxes Income – Total Expenses = Net Income

Net income is the total amount of money that you have after all expenses and taxes have been calculated. Once you know your net income, you will then know what your financial situation is to a much greater degree.

Track Expenses for A Month

Tracking expenses for a month can give practical information about your spending habits. Doing this for a month can help you see where you could improve with your expenses. It can also show you exactly what your money is being spent on which could be important for getting all of your expenses accounted for.

Tracking expenses can be done by writing it on your computer and phone. Doing it this way will give you the best chance at tracking down any miscellaneous expenses, especially cash ones that can go unnoticed.

Focus on Cutting Down on Extra Expenses

Focus on cutting down on extra expenses is another way to save money and budget better. Buying extra stuff, whether it is a small or big purchase, is going to add up to being costly.

The little extra purchases, such as a coffee on your way to work in the morning, is going to add up to a much bigger expense by the end of the month. I like to find areas in my budget to reduce in order to make the money I earn last longer.

Reduce Taxes

Reducing how much you pay each year in taxes can vary for a few reasons and there could be room for saving money here. If you’re filing status has recently changed, then you could have the opportunity to pay less each year.

Filing as a single filer versus filing jointly with your spouse could mean big differences in taxes being owed.

The main 5 filing statuses to choose from include the following:

  • Single
  • Married Filing Jointly
  • Married Filing Separately
  • Head of Household
  • Qualifying Widow with dependent child

If you recently got married and want to file jointly, then you and your spouse could be in line for a reduction in taxes owed. This is because there is a higher standard deduction available which will reduce how much of your money is getting taxed.

Couples who file jointly are more likely to qualify for other tax breaks which could save them even more money. Check with the IRS website to confirm what is your filing status and the ways which you can potentially cut down on your taxes due.

If you want to learn more about saving on taxes, read How to Save Money on Your Taxes.

Connect with Knowledgeable Resources

Connecting with knowledgeable resources can help give you helpful information too. Both of the following resources can be huge for saving money and budgeting more intelligently with your money.

Check out the following knowledgeable websites:

The Penny Hoarder is a big website with a team dedicated to educating people about ideas for making, saving and budgeting money. This site has a budgeting section which is best for providing tips and information for budgeting.

The team working for The Penny Hoarder is constantly updating and adding new articles. These articles are focused on giving out helpful and beneficial advice for how to budget effectively.

The Smart Wallet is another resourceful site that is focused on giving people the information to manage their money and finances better. This site is best for getting tips for saving money and using those tips to help you budget too.

These 2 sites are great places to find beneficial advice for budgeting and tips for managing your finances.

Buy In Bulk

Buying in bulk is a great way to save money on tons of items and almost always is worth doing. I like to buy grocery, household and miscellaneous items in bulk from discount stores. Paper towels, pasta, coffee and toilet paper are a few of the items that I buy in large quantities.

Coffee is one of those expenses where you can save a lot if you buy it in bulk because it is going to be much cheaper. I know that I will be using this coffee and getting it in bulk is guaranteeing that I save big money.

Using discount stores can be ideal for saving money on these items and is especially true if you use a bulk specific store, such as Costco. Costco is a really great option for buying in bulk because it will get you super saving deals.

But buying many of your grocery, household and miscellaneous items that you are going to be using a lot could be key for saving and budgeting for your family.

Create A Safety Net

Creating a safety net is a really good idea for having financial security and maintaining it. This safety net of money is usually equal to 3 months worth of expenses. This amount is supposed to cover you in the event of an unexpected expense such as suddenly not being able to work for a couple months.

So many people are living paycheck to paycheck or close to it. Creating a safety net will help you be prepared for sporadic changes in income. The sporadic change could be a seasonal job where you don’t work for 2-3 months during the year.

The 3 months worth of expenses is the most recommended amount to shoot for because it allows you to be the most prepared. I have experimented with different safety net amounts and the 3 months worth is probably the best amount. It allows me to feel prepared in the event of an out of nowhere financial expense.

But even putting 1 months worth of expenses in your bank account will go a long way in keeping you financially secure.

Decrease Your Food Expense

Decrease Your Food Expense

Everyone needs to eat and decreasing your food expense can be huge for saving money. When it comes to budgeting for 1 person or a large family, the food expense is one of the most changeable ones.

Becoming much better at consistently preparing food can go a long way to saving money. I like to prepare a smoothie, sandwich and pasta dish every day. The more you practice food prepping the more you are likely to save.

The larger your family the more potential for savings there can be when you focus on the food expense. Start small with always packing snacks then progress to creating a sandwich.

Budget Smarter and Save Better

There are tons of ways to budget smarter and I hope that this post gave you some practical ideas for how to do this.

I hope that you liked this post and learned valuable information for how to budget for a family.

If you have any questions, please leave them below and I will answer them to the best of my ability.

6 Replies to “How To Budget For A Family-8 Great Tips”

  1. Excellent excellent tips. I know I need to look at how I can reduce my spending. Those little things really add up, like the coffees etc. Budgeting is essential. And tracking expenditure – well, I think that would be a real eye opener. We don’t realise what we spend on a whole lot of unnecessary things. Buying in bulk is great too – increases your buying power. Thanks very much, really useful information that we need to take the time to implement.

  2. Really Fantastic Financial advice. Here in New Zealand our tax requirements are different, but everything else you have shared is right on the point. I come from an accounts background and follow many of the methods you have mentioned.

    It is not uncommon here for more than one family to be living in the same house now because the price of everything is going up, especially rent, but wages remain the same.

    I practice bulk buying of food where I can and this does work out to be cheaper and grow our own veggies, which allows us to save money.

    I gave up my fulltime job due to stress and started an excel spreadsheet I tracked my normal spending then cut back on somethings and was blown away by how much I was spending just on coffee everyday- huge savings daily.

    One of the most important aspects you mentioned that I totally agree with , is preparing or putting enough away as a safety net to cover your expenses. I planned this when I gave up work full time and it has got me through 4 months without worrying.

    I would really highly recommend to people that if they are not good with budgets that get the help they need such as the resources you have listed and safe guard their futures.
    Excellent post and very informative

    1. A safety net can help you be prepared for many unexpected financially challenging situations.
      Life can be full of good surprises and bad surprises. Having a strong safety net established can go a long way in helping you be prepared for all kinds of surprises.
      I am very happy that you liked this post!

  3. Very good tips on budgeting. Very nice website as well. In today’s world budgeting is the only way most people can possibly make ends meet. I learned the hard way what happens without a safety net to fall back on.
    Thank You for the tips and tricks.

Leave a Reply

Your email address will not be published. Required fields are marked *