4 Ways to Manage and Monitor Monthly Family Expenses

There are many household expenses to consider when balancing the budget. Finances can easily spin out of control when not carefully managed and monitored. While it may seem overwhelming to keep on top of everything, there are many practical and adequate ways to oversee the budget. Doing so also allows you to start making goals and gains. Managing the budget allows for long term financial freedom, rather than restrictions. Read on for some helpful money management suggestions.

List Expenses

Before you can manage family expenses, you need to know what you are working with. Whether it is a paper and pencil list or a spreadsheet, take time to list all income as well as outgoing expenses. This information will provide a valuable foundation for setting financial goals and making any needed adjustments to the reality of current income or outgoing expenses. There are always areas to tweak, and it’s impossible to set goals and truly evaluate expenses without seeing financial facts in detail.

Use a Cash System

If your family is having difficulty sticking to a prescribed budget, start using a cash system for expenditures such as entertainment, eating out, and groceries. The cash system does not apply to non-negotiable bills such as rent or mortgage. Swiping a credit or debit card can allow for a detachment from money realities. Having cash in hand to use in set amounts helps with gaining a realistic view of how much is being spent per separate budget area.

Credit Repair

If credit is an issue, be sure to take action. It can be tempting to avoid the financial truth, but full openness is the only way to move forward. Obtain credit reports and then contact companies with any errors. You should also read up on reviews about credit repair companies. For instance, reviews on Lexington Law, is one of many great resources for this information. Work on paying down existing credit and avoid opening new lines of credit. If paying bills on time has been an issue, set them up on auto pay.

Include Children in Financial Goals

Children typically receive money throughout the year from doing chores or as gifts for birthdays and holidays. As you set financial goals, include children in the discussion. This allows them to see some of the big picture of family living and finances. It also allows them to begin using healthy money management skills themselves. For example, you may want to have containers or wallets where children separate money in to various categories such as saving, spending, and giving.

The most important part of money management is awareness. Do not bury your head in the sand. Successful money management leads to better credit, increased confidence, and family unity. Make money work for your family, rather than the other way around.

Tim Esterdahl

Tim Esterdahl is the editor of IFCS blog. He is a married father of three and enjoys golf in his spare time.

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