How to create a family budget in 5 steps
With a little math and motivation, creating a family budget shouldn’t be too complicated. Get started with these 5 simple steps:

1. Calculate your family income
The first step is adding up how much you and any other family members bring in each month. Look at both the reliable fixed income you can always count on, plus any extra earnings from things like freelance work.

2. Note down your monthly costs
Write down a list of your family’s monthly spending, including your needs and your wants, keeping in mind that these will be different for every family. Your needs will likely include housing costs, childcare, food costs, health insurance, transportation costs or car payments, utilities, and internet/phone fees. Your wants are extras that you’d rather not go without. This could include frequent dinners out, new clothes, or trips to the cinema.

3. Evaluate the net income
By subtracting your monthly costs from your income, you’ll arrive at what we call your net income. Is there any money left over? If so, these funds can be put towards savings or any debts to be paid off.

4. Decide a savings strategy
Once you know what’s left over each month, decide on a savings strategy for the extra funds. Here, there’s no right or wrong—maybe you want to put money away for retirement or a downpayment on a house? Perhaps you want to save up for a family holiday or a blow-out birthday party for your child. The important thing is that you feel in control of your finances and what’s happening on your account each month.

5. Review and streamline
Now that you have a clear overview of your income, spending, and goals, it’s time to set your budget. You may want to review what costs can be cut to optimize your saving goals.