To really get out of debt and become financially independent, you will need a budget. Here are 5 unique family budgeting methods that you can consider to help get you on the right track. Many feel like budgets are a waste of time if they are already living paycheck to paycheck, but reality is we all need to understand and see how we are spending money to truly find out when we have room to cut back. These methods are great for helping you see where your money goes. Check out all of our Spending Freeze blog posts. Also, make sure to check out our Financial Freedom Plan and print our Monthly Budget sheets for your Family Binder.
5 Unique Family Budgeting Methods
Cash envelope method. The popular envelope method that is recommended by Dave Ramsey is something we have shared about in the past. We even have some free printable envelopes for you to use to get started. This method is where you cash your paycheck and assign the cash into envelopes for various regular bills and needs. Everything from your gas and groceries to birthday gifts or mortgage can all go into individual envelopes. Once the money has been spent from an envelope, you aren’t allowed to pull anything more from your bank account that month. It can really help you cut back on daily expenses like gas, groceries and those last minute splurges.
Spreadsheet method. This works great for many people. Creating a simple spreadsheet in Google Docs or through a free office program like Libre Office means you can keep track of all of your income on one column, and all of your bills on another. This helps you see everything in one location and makes it easier to manage. The easy formulas in spreadsheets can also transfer into a simple check register for you to see what is remaining after each bill is paid. You can create a spreadsheet for regular monthly bills that has your income listed, one for miscellaneous bills and expenses, and one for a simple check register to show every individual transaction as it goes through your bank account.
Pen & paper method. Sometimes you just have to go back to the way things use to be and pull out a legal pad, a calculator and your pen or pencil. This method works well for many families who simply like something hand written. A column for all of your bills and a column for all income make it easy to calculate weekly. Just make sure that everything is transferred month to month so you don’t forget a bill.
Calendar method. Writing due dates on a calendar to quickly glance at each week is another simpler hand written method that many like. It can help you to keep track of when to send out bills if you pay by check, as well as remind you how much money you need to manage your household expenses week to week.
Auto draft bill payments. One way that many people make sure to never forget a bill is to set them up as an auto draft through their bank account. Many mortgage companies, insurances, utilities and even credit cards have options for a monthly auto draft that takes the payment amount directly from your bank account without you having to write a check or schedule a bill to be paid.
These unique family budgeting methods are perfect for helping everyone manage to pay off debt, stay on track week to week or even build up a savings account for emergency needs.
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