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How to prepare a family budget

how to prepare a family budget

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Gather together your financial records for the last year. Looking at your previous expenses is a good way to start with an estimate for each month. Generally, events happen at the same time each year that may require extra money. Additionally, you may have insurance and other expenses due once a year that you will need to include in your budget, and having a list of expenses for the year will help you plan for that.

List any promotions or other expenses that you are planning for this year. Next to each event write down the expected cost. This list will help you add these events to your new budget. It can also help you to trim back expenses if you are over the budget or need to find more money for another event.

Look at last year’s

expenses and subtract any that you will not have this year. These types of expenses may be purchasing new office equipment or replacing an air conditioner in the building. These costs generally do not repeat every year. You may want to set up a slush fund that you contribute to each month to cover these types of expenses; if so, figure up the annual cost and divide it by 12 for your monthly budget.

Add together last year’s expenses plus 10 percent for the operating costs for each month. Then you need to add the amount from the events list. This will be your total monthly expense forecast.

Adjust the categories if you are over the allotted budget amount for each month. You may need to reduce the amount you spend on promotional events or you may need to eliminate spending categories all together.

Category: Bank

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