Skip to Content


Do you have a family budget? Do you wish you had a budget but don’t know where to start?

It can be hard to start planning and forming a budget when you don’t know where to start. The best place to start with building a family budget is to start with the basics.

Here are some tips to help you formulate a simple family budget.

Budget Basics



The first place to start in the outline of your budget is with your income.

The income area of your budget is not the place to write down ideals.

Simply take a look at your net income over the last three months and estimate an average monthly income. Or you might have income that changes very little month-to-month; it should therefore be pretty easy to figure out your monthly income.


Your next category should be expenses.

It’s good to include enough detail that you have a grasp on things, but splitting your expenses into dozens of little categories will probably only frustrate you. Try to make your categories fairly general – “entertainment,” for example, is a more general category than “computer games, movies, cable, and DVDs” listed as separate categories. There will probably be more estimation here than in the income category.

As you break down your expenses into understandable categories and numbers, remember that charitable giving or any giving away of money should be also listed as an expenditure.


Estimation gives way to “real” numbers when you write down your actual expenses during the month. This is the last section of your budget plan. Keep a running tally of your expenses for several months, and then look at where you are.

Budget Basics


In budgeting, there are some principles that are considered basic:


This can be a hard one, but it’s vital for a budget to function properly. Real needs are things like clothes, food, and shelter; but designer clothes, gourmet food, and a spacious/extravagant dwelling are more like wants!


You may find yourself surprised the first time you do a budget and discover that you actually don’t make enough money to cover your expenses.

If you discover this, you need to look carefully at your income section and see where you can increase it, and look just as carefully at the expenses and see where you can make cuts.

You may also like this post with 50 CREATIVE WAYS TO SAVE MONEY IN YOUR DAILY LIFE:

jar with coins

You can sign-up to get an email update each day. Connect with us on: